When you talk about interest rates you have to qualify, because what matters for the subject matter in discussion are the REAL and NOT NOMINAL interest rates.
@Others
What logic says is that for people to move from government bonds to gold, the gold price should be increasing at an higher rate in real terms than that of the interest rate being paid for bonds after storage and insurance costs are taking care of. Otherwise, what would be the point?
The problem is that in practice this very seldom can be known ex -ante (before the event). So, whatever people decide has to involve a bit of a bet.
