I found an interesting article some of you may find interesting. It talks about the cost of gold mining. It says most gold mines are paying on average $1000 dollars to mine an ounce of gold. If true, this basically means the price cannot go too much lower or mining companies will have to close down creating shorter supply.
On another note, I also heard from a mate who knows a gold miner in Australia. He basically said that the mine costs per ounce range from $600-$1200. It varies on which area of the mine is dug. Some sections produce more gold than others. So if the gold price is too cheap then they would just stop mining the expensive side of the mine