This is a plot of CPI vs. Gold Price in the last 35 years or so. I haven't drawn any conclusions yet. It seems as though the rate of increase of the price of gold is lower than the CPI. Also of note was the CPI before the Gold Standard was removed in 1971 (not in this plot). The CPI still increased at a steady rate. This I suppose could be linked to an increase in gold supply through mining. Anyhow, one would expect the CPI and gold to be linked in some manner, but I am not sure how they are related.
I'd also like an explanation for why the gold price increased drastically starting in ~2001? What happened then that caused gold demand to increase so drastically?
