Looking at worldwide gold demand trends, two things are pretty clear. Asian demand is increasing and Western demand is falling.
In fact, world gold mine production (averaging about 2,800 tons per year over the last five years) only just manages to cover Asian demand.
In the chart below (from Nick Laird at Sharelynx), we see Asian demand in red. It has risen almost inexorably since the early 1980s, while Western demand (the blue line) has been falling since 2003.
Last year, Indian gold demand came in at 1,100 tons, and Chinese imports through Hong Kong were 1,200 tons. Together that is 2,300 tons. In total, only 2,600 tons of gold were produced outside China. Thank goodness for scrap, recycling and Western selling.