Would an economic model suggest that, since the price has increased sixfold in the last eight years, the supply should have declined sixfold during the same period? I don't buy the argument that global demand is driving prices up without a significant reduction in supply......
It's a ratio problem, price is related to the ratio of demand over supply, though not linearly. It doesn't matter if the supply goes down or the demand goes up, or both. Either will increase the ratio of demand over supply which will drive the price up.