NOTE: It is hard to find hard numbers on gold production, at least online. I find a lot of websites from 2008-2010 that claim that gold production is declining and that gold is getting harder and harder to find and thus will become more valuable.
This site, for example, claims that the historic total worldwide production of gold, for all time, was 165,000 metric tons - and that we are running out! However, if you scroll down, they do note that about 2500 metric tons are mined annually (and the accompanying chart shows how mining has been on the increase over the last few decades!). This means the world supply of gold increases by 1.5% annually, which is a pretty good clip. Even though 12% of this is used for industrial purposes, this still means the world supply increases by 1.32% per year. I am not sure we are going to "run out" anytime soon. In fact, the amount of gold in the world just keeps going up and up!
NOTE: Despite Gold's dismal record over the last few years, some idiots are still predicting it will hit $5000 an ounce "in a few years". When asked for quantitative data as to why, they get slippery and elusive and have no hard numbers. Again, it costs $500 an ounce to "make" - and every year, the world has an increased supply (over 1%!). So overall, we end up with more and more gold, over time.
Demand is based on fear and fear alone. Once fear evaporates, the price of gold plummets.