[grania]

The correlation I see is between one year treasury notes and "real" after inflation interest rates. And the correlation is...the higher those interest rates are, the more people actually earn on their savings, after inflation. Well, yeah....(pretty chart, though)

Although, as with anything, the value of something is really what people are willing to pay for it if you want to sell it. So, if those who support gold investment can spread the word, and people jump on a gold bandwagon, it gains value. For people who get to sell gold for a profit.

[justshutupandtakeit]

The author's contention is that there is a negative correlation between real rates of interest and gold prices. I don't believe regression analysis would confirm this thesis though.