I have seen these charts, and they do not say that gold is cheap, nor do they say that gold should go higher. It does tell us that the dollar, as a fiat currency, debases our purchasing power.
In a bubble, one of the greatest problems is determining value. Those who want ot see gold higher will trot out valuation metrics that say it should go higher. Those who think it is overvalued will bring out other valuation metrics. Who is right? It is not clear until time passes which one had the better metric, and even then, an investor could be right for the wrong reasons. All of these metrics are relative, and there is nothing to say that there should be mean reversion.
Gold is cheap, or stocks are overvalued. Take your pick.
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