The leverage aspect comes from the fact that as the price of gold increases since their cost of production is steady the increase in the price of gold will fall to their bottom line.

FORBES: Gold To Reach $2,000 An Ounce?

This reflects a 26 percent increase in the price of gold in the second quarter.

FORBES: Global Gold Demand Fell 17%, Value Rose 5%, India and China Account for More than Half of Total Demand

Nevertheless, some analysts say that mine output has not grown as rapidly as might be expected given a several-fold increase in the price of gold over the last decade.

FORBES: Global Output From Gold Mines In Upswing Although Some Constraints Persist

That in turn, helped fuel a 116% increase since 2007 in the price of gold, the classic hedge against inflation, because its value tends to increase as the dollar weakens.

WSJ: Gold Plummets to Two-Year Low

With new low cost access, the demand curve temporarily shifted causing an increase in the dollar price of gold.

FORBES: Gold Sets Up As The Next Great Short

Gold jewelry demand was weaker in all but six countries and clearly reflects the year-over-year 22 percent increase in the average price of gold to 1, 690.57, according to the WGC Gold Demand Trend report for the first quarter of 2012.

FORBES: Global Gold Jewelry Demand Down 6% in Q1

One was to devalue the dollar and raise the price of gold consistent with the increase in the CPI.

FORBES: Give The Gold Standard Its Due

The price of gold was a slight factor in the increase, Jacques reportedly said.

FORBES: Warren Buffett Boosts Jewelry Sales at Borsheims