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Is Cost Of Production The Support Of Gold Price?

Recently, some people opine that the gold price should gain support at around US Dollar 1200 because a lot of gold miners are with cost of production of gold at this price if considering the total cost of production.

Personally wonder at this. A good deal of time, see the price of a product dropping below the cost of production for years. This is especially true with such a large quantity of gold bought for the protection of the weak US dollar and inflation.

If this protection need is not necessary, the supply of gold could be glutted for years.

Do not know what is the trough of gold price but believe that after more than ten year rally of gold. The swing in another direction would not be just a few months.

Reference of this conjecture is the gold price cycle during the last peak at around 1970-80s. The subsequent bear market of gold last for years.