slackeranalyst

This is a fantastic question, I like to relate it to oil when trying to wrap my head around it. Basically there is a limited/fixed amount of gold in the world so it is classified as a nonrenewable resource. Therefore, your supply curve is going to be perfectly elastic at a price that is equal to the present value of its expected price NEXT PERIOD (aka, its perfectly elastic).
Its kinda retarded as in real life I doubt gold is actually perfectly elastic. But that’s what we are assuming based on economic principles. Basically its perfectly elastic because, and I quote, “if suppliers can’t get their required price, they’ll leave it in the ground (or adjust quantity supplied to 0). There’s nothing to drive them to sell for a lower price.”
So the final one line answer is “The quantity supplied is determined by demand curve at a price that is the present value of expected next period price”