An interview from Eric Sprott came to my mind today. Apparently, Dubai will build the largest refinery in the world with 1400 tonnes/annum gold refining capacity. You can put that next to the 3000 tonnes/annum Swiss gold refining capacity today. That's a lot of capacity coming online. Now why would someone do this? It's simple, because demand for gold is going up, not down.
Just like in the oil refining industry, capacity follows demand. The more people consume gasoline (or gold jewelry), the more oil refining capacity (or gold refining capacity) is needed.
This is the gold refining picture today. If you add it all up we get around 8000 tonnes/annum. Most of these are Swiss companies. But now you can add Dubai's Kaloti to that list.
I really wonder what will happen at this stage when demand is going up, while gold supply is bound to go down in 2015.