Incessant cost pressures are stripping value from gold miners leaving the sector vulnerable to ongoing share price falls even if gold bullion prices do not fall any further. Between 2003 and 2012, Newmont's gold production cash cost rose by just under 14% a year. Between 1997 and late 2010, during some of the most favourable conditions imaginable for the sector, the gold price rose at an annualised rate of 10% while the prices of large cap gold producers rose by a little over 9%. The cost pressures warrant a re-assessment of how gold miners can add value in an equity portfolio. PortfolioDirect is removing producing gold companies from its recommended model portfolios in favour of an exchange traded fund offering gold bullion price exposure. My full commentary on why the role of gold equities needs to be reappraised is at (VIEW LINK).