Will mining costs create a floor for gold prices? This is a popular argument that gold bugs (bulls) cling to, with the idea that if gold continues to be below the cost of mining, then miners will stop mining and tighten the supply forcing gold prices up.
Here is what, Jim Rogers (Chairman of Rogers Holdings) has to say regarding this during his interview with Business Insider:
"I've been in the investment world a long time and I know that things can stay below the cost of production for years. It takes a long time for people to believe they have to close their mines. It cost money to close a mine, it costs money to re-open a mine, so people are reluctant to close mines. So you can see any commodity staying below the cost of production for a while, especially if it's something like a mine which is expensive to close, and expensive to open."
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