I hate writing another post about gold, like I'm trying to convince myself of something, but I think it's a data point worth considering.
Back in 2008, when the shit really hit the fan, the price of gold dropped over $300 (or about 30%) during a 7-month period -- a similar move nominally to right now, but a much bigger one on a percentage basis. And it happened as global economies seemed to be crumbling.
Yes, the situation was different. Back then, there was a full-fledged panic liquidation across most asset classes. So, it stands to reason that when everybody is selling everything, gold would not be spared. On the other hand, it would be very easy to say that it did not perform like it should have, given its reputation as a safe haven. And here is where I think the idea that markets can be irrational for periods of time matters. Ultimately, gold got back on track and continued the move higher. But there were some gnarly times back then as it was going down.
