https://www.lewrockwell.com/2013/07/lars-schall/whats-the-true-importance-of-gold/ The article has a nice summary on the current market position for gold and gold miners, and a discussion about value in general. Here is my favourite part: According to Carl Menger, the founder of the Austrian School of Economics, the value of a good is the result of its expected marginal utility on the part of the valuing individual. He once said that "Value does not exist outside the consciousness of men", which is a very central idea. The value of a good or a service is therefore not an objective magnitude, but always the result of a subjective act of evaluation. Since there exist as many preference scales as human beings (and because this ranking of preferences is also continually changing), is it will never be possible to ascertain objectively what the value of a thing or a service should be. It is therefore impossible to calculate a fair value for gold. However, you can still compare the current price of gold to other asset classes, monetary aggregates and their possible future development and so on. In the report, I drew some long-term ratios, for example between gold and fine wine, between gold and arts, between gold and housing, and definitely between gold and financial assets like bonds and equities. And from this long-term analysis you can say that gold is everything but expensive, it is much below the long-term averages, and as we all know, a big secular bull market ends in euphoria, and therefore the ratios would have to be at extreme levels, and As we're far away from that, I think that can make you pretty confident about the price of gold. The often cited argument that there is a 'gold bubble' can therefore be easily refuted. Bull markets end in euphoria, which buttresses our argument that there will be a final stage in the form of a trend acceleration phase.
