Gold is not an investement, in the same way that a share of stock is. It is only a store of value, most clearly seen when viewed over long periods of time. Its value vs. paper money can obviously fluctuate in the short term (e.g. 20 year period from 1980-2000).
Gold is REAL money and it is most valuable when it is most needed. It's value rises when faith in fiat money falls. Golds rise is telegraphing trouble ahead for the $US.
By that standard, bonds are a much better value, and diversified stocks are the best of all.