Barrick Gold Corporation (USA) (ABX), Goldcorp Inc. (USA) (GG), Newmont Mining Corp (NEM): When Will the Low Gold Price Start Affecting Miners?

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The numbers speak for themselves, the biggest gold miners in the world are already starting to see some of their operations become unprofitable and cash-flow negative as the price of gold plummets, which is a problem for investors and mine owners alike. In addition, far from being the safe, inflation-protected asset that gold should be, the yellow metal has become speculative and for the time being, Foolish investors should stay away while traders have their fun.

With talk of mines starting to close, if the price of gold drops to below $1,200 an ounce, the demand for gold could soon begin to outstrip supply, putting a floor under recent declines.

Fool contributor Rupert Hargreaves has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article When Will the Low Gold Price Start Affecting Miners? originally appeared on Fool.com.

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