I found this passage in Panic by Michael Lewis:

The world of money was in upheaval. Funds were rushing out of the stock market and into safe havens. The conventional safe haven for money is gold, but this was not a conventional moment. The price of gold was falling fast. Two creative theories made their happy way around the trading floor, both explaining the fall in gold. The first was that investors were being forced to sell their gold to meet margin calls in the stock market. The second was that in the depression that followed the crash, investors would have no need to fear inflation, and since for many gold was protection against inflation, it was less in demand. Whatever the case, money was pouring not into gold but into money markets- i.e. short-term deposits.

The above sounds like an uncanny description following Gold’s fall last week. Guess what, this was a description of Black Monday, 19 Oct 1987.

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