I think its been in a bubble since something like 2006. That is of course when everything is fixed and solved gold will drop again. That is not to say the bubble cannot inflate a whole lot more as we are far from fixing any problems rather sweeping them under the rug really.
Based on the PPP calculations in the article, I think it is missing something - that the USD currently has a higher purchasing power than it should. I know, free markets and all that, but I don't think any currencies are accurately valued right now based on how they would have been historically valued. Too many puppetmasters or market-makers in the markets. All i'm saying is that the I think the current PPP ratio of 2.54 is too high. I'd even go so far as to suggest that gold is a leading dollar PPP indicator, and that the dollar is a lagging gold PPP indicator. Although that's a bit twisted.
Gold is a unit that does not change, only the value of the fiat money that wants to be exchanged for it does. You can not keep printing trillions of dollars and think the value of Gold will go down. So unless you remove those dollars from circulation, What scenario do you see that occurring in today?.
Um complete banking collapse after several sovereign nations default and hundreds of billions of dollars of debt are liquidated off the books?
I will feel better about the price of gold when it falls below the price of platinum. I don't care about the present day fundamentals, my pagan gods have determined platinum is of more value than gold.