Gold supply declined in 2013 as gold recycling slowed and mine production decreased according to Daniel Hooijer gold analyst and partner at KPMG. He also notes that investors are moving away from investing in gold mining shares and exchange traded products in favour of physical bars, coins and jewellery.

Hooijer concludes the reduction in exploration activity due to high costs has resulted in fewer mine discoveries, which in time will negatively impact future replenishment of gold reserves.