Gold mining cost versus spot price

[benjamen]

http://www.miningweekly.com/article/what-does-it-cost-to-produce-an-ounce-of-gold-2009-03-16
http://gata.org/node/7709
http://caps.fool.com/Blogs/what-is-the-real-cost-to-mine/308969

While it seems to be up to debate about the actual average cost to mine an ounce of gold, it seems safe to say that number is less than the spot price of gold.

My question is who makes the profit between the cost to the miner to produce the gold and cost to for the consumer to purchase gold?

 

[ancona]

The vig is split between the owner of the mine, and the refiners who get paid to produce product and the retailer who peels off a percentage to handle the transactions.

 

[benjamen]

The vig is split between the owner of the mine, and the refiners who get paid to produce product and the retailer who peels off a percentage to handle the transactions.

I have a friend getting into the business of being the middle man between newer miners and big buyers. He was getting kilo gold bars for ~35k. This just seems crazy to me when the big refiners will pay ~50k for them?!