[miningmx.com] – THE gold mining sector was in need of cleansing as a third of world production was unprofitable at a price lower than $1,250/oz, said Bloomberg News which cited an analyst from Fidelity Investments.
Gold was trading at about $1,235/oz so it “might not be a bad thing” if the number of producers was reduced by a similar percentage, Bloomberg quoted Joe Wickwire who manages the Fidelity Select Gold Portfolio, a fund with $1,8bn in assets.
“It’s part of the life cycle of industries that every so often you need to have a cleansing of that which is not working,’ Wickwire said.
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