FX.co ★ Gold miners lose $169 billion

Gold producers face closing mines or shutting themselves down after the metal’s worst slump in three decades.
According to Bloomberg, Barrick Gold Corp. (ABX) and Newmont Mining Corp., the world’s two largest producers, are among companies in the FTSE Gold Mines Index (FTMIGMI) that have collectively lost about $169 billion in market value since bullion peaked in 2011.
The same holds true Russia’s gold-mining companies. Thus, on Moscow Exchange, Polyus Gold shares had dropped to 976 rubles per share by April 18. Though, in 2011 its price was 1,900 rubles. Thus, the slump accounted for 50%.
Bloomberg states gold equities are trading at the lowest level relative to gold in at least 20 years after the metal’s 13% plunge so far in April.
Gold’s drop to a closing price of $1,400 an ounce on April 15 brings it closer to the global average production cost of about $1,200 an ounce. It means many companies make or small gain or loss.
For the month of April the gold’s price has dropped 13%, as the result of trading session, the slump was 9.3%, a 30-year record.
The reason why traders sold gold is still not clear. Some were afraid of slowdown in China’s growth, some feared that commodity super cycle was ending, the others considered gold was overvalued due to gold equities grew several times for the last decade. In 2000, the gold’s price was below $300 an ounce.