NAV, it appears to me that gold has gotten way ahead of itself due to fear of the future.
When I was a kid back in the stone ages, gold sold for ~$50/oz and I made $1.65/hour working in a train door factory. Today gold sells for $1266/oz up by a factor of ~25 and similar factory workers today would be lucky to make $20/hr up by a factor of only 12.
For lunch back in the good old days I might have a McDonalds hamburger, fries and a Coke for the princely sum of $0.49 excluding taxes. Today that lunch will cost roughly $5.75 up also by a factor of almost 12.
Gold is currently priced not for the inflation that has occurred, but for some nasty future inflation that has yet to manifest itself. If that dire future fails to unfold soon, that fear factor should come out of gold forcing it to settle down to somewhere near 12 x $50 or $600/oz. The same goes for silver coins which were in circulation when I built those doors. Back then one dollar bought one ounce of coin grade silver. Today on EBAY coin silver sells for about $16/oz, 64% of the price expansion of gold.
It appears to me that Gold is expensive unless inflation makes a big step change or all heck breaks loose relatively soon.