reason for last silver bust?, page-2

Not sure, but I would of figured the higher the gold prices go, the higher interest rates will have to go. The gold price historically has led interest rates moves higher or lower, since gold price is primarily influenced by changes in money supply. More Money --> Higher Gold Price --> Higher interest rates. When governments are slapped with higher rates, their usual response is to create more money... and therefore there is positive feedback.

Whether gold is a good investment is more a matter of when the interest rates exceed the creation of more money. When interest rates are higher than the rate of money creation, then the accumulated interest earnings on cash will outpace the rate of appreciation in the gold price viz. positive real interest rates. When that happens, it signals that there is excess money, and the rate of money creation drops leading to lower gold prices leading to a lowering of interest rates.

Who knows how high the Interest rates will hit when they start their inevitable climb higher, but rest assured if Interest rates were to climb to 15%, gold I'd imagine would be trading closer to $15,000/oz.