1. As a form of money it has not kept pace with the increase in the monetary supply. Despite claims to the contrary by some, gold is money with a number of larger economies having 50% or more of reserves in gold.
2. On the supply side, POG is way too low to justify investment in large new mines other than those with well above average margins. Someone recently posted a study showing the average cost of production including capex is well above $2000/oz. That suggests no where near enough new supply will come on line to replace depleting mines or high cost mines forced to shut down- at least not until POG moves well above $2000 to justify new investment.