Yes this is a bubble but your perspective is wrong. This is the beginning of the bubble.
1870 GLD Bubble $50-$200 1985 GLD Bubble $50-$900
Using these same metrics and extrapolating linearly
2014 GLD Bubble $250-$20,225
Yes $20,000 an ounce.
It seems odd for you to conceive but during the famine years amid panic I beleive we will see this relatively normal spike occur. Yes Normal.
That relative valuation will allow the Gold Hoarding Countries to propose a new Currency backed by re-instating the Gold Standard using their 100 Trillion in Gold (at $20,000 an ounce) to print $50 Trillion in paper money for us to use.
It will be voluntary to turn in your currency for Gold have the conversion applied and then re-converted into Global Dollars. It will be for anyone who wishes to have a stable life and Bread Less than $60 USD. It will be quite easy to convince.
Lets just say $3000/ ounce. Hows that?
But hey the market will eclipse the old DOW 14,000 by a long shot and also probably hit 18,000. Unfortunately as measured by Gold you will have lost like 60% of your wealth when you have to convert into the Global Dollar. Surprise.
The fundamentals for gold increase every day this is why it keeps rising.
Our government says they want to devalue the dollar, they will do it and gold will continue to rise.
Give a reason for dollar to trend up and you will have given a reason for gold to trend down. However, the opposite will be the trend for years to come and the dollar's decline will likely accelerate going forward.