Be realistic here. The value of a stock is (depending on whether you're a value or growth investor) either the discounted value of the assets owned by the company or the time-discounted value of future earnings flows. Either way, it is worth what supply-demand places on the asset.
The same thing applies to gold, oil, cotton, copper, or the US Dollar index.
So which would you rather have: GLD or AIG?
Markets go from extreme to extreme, and with the financial mess that has been created since Clinton left office (The US Dollar Index fell from 110 to 81 while GWB was in office), gold has taken on the value of a world reserve currency.
Remember the bond vigilantes?
The price of gold is saying something, just like the price of the Euro is saying something. It says that world governments need to get their spending under control, but it says that they won't (see the Republicans backing off on spending cuts just as soon as they got their tax cuts for the rich approved), so the value of certain assets will continue to move to extremes until enough pain is inflicted to cause a move to a sustainable equilibrium.
I'm not a bear, but a long term trend follower (see John Henry & Co.) long both stocks and gold, and I'm likely to sit tight holding both until the trends reverse.