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