Gold futures have fallen over 10% from the high price
set this January, and about 35% from the five year high made in 2011.
Given the correction we've already seen, how can one contend that gold
may still be overpriced? The answer lies in its relative value and the
current structure of the precious metals markets.
One ounce of
gold will currently buy around 74 ounces of silver. This is near the
higher end of its recent range. Since 2000, the ratio of gold to silver
has ranged from around 80:1 to a low of about 33:1. 
The increase in this ratio since 2011 has not been caused by a rise in gold, but by the fact that gold has fallen relatively less than silver: (more)
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