gold crash timeline

If you look at the last two recessions, 1987 and 2007 you will notice that at some point in the recession gold gets dumped.

This is the point when investors are resigned that a recession will be long term and liquidate. The recent events show that mentality.

Gold prices heading up to a recession but there is a point where there is a significant correction.

http://goldnews.bullionvault.com/gold_recession_deflation_inflation_prices_dollar_012820083

If you look at the graph in the link, prices from 1955 to 1968 were flat for 15yrs, there was a spike then a recession in 1970s then gold fell. Then a spike followed by a 40% decline, in 1975.

Gold rises $100 from 1977 to $700 in 1980 and crashes $300 in 1982 in the recession.

At 1983 it his a peak to of $500 then crashes to $370 in 1989 or 25%. It continues to fall in the 90s recession from $370 to $270 losing another 27% of its value all the way to 2002.

Therefore from 1983 to 2002 gold loses 42% of its value, that should be enough evidence of how volitile gold is in a recession.

I see only one real spike in a recession and even that is only really a small price recovery. That is around 1982 when gold went from around $300 to $500 but quickly fell back to $300 within 2yrs.
This bounce only occured after a fall from $700 to $300 or 57% drop in 1980s.

The bounce was probably catch up from the 15 yrs of stagnant gold prices from 1955 to 1970.

This indicates gold is volitile in a recession and will lose 25 to 40% plus of its value.

I would like to think that inflation and a shortage would create a new benchmark for gold but looking the history and 11 recessions, its a big gamble.