Third, and most importantly from the perspective of current and would be gold owners, it is important to understand that in recent history volatility has preceded upward movement in the gold price, as shown in the chart above. Volatility, as ETH Zurich points out in the first quote, may not spike before the crash, but it most certainly has surged in the past before an increase in the price of gold.

Gold has been under cross examination over the past week as to why it hasn’t gone up while stocks have gone down. Just as complacency and low volatility were the “lull before the storm” in the stock and bond markets, the hesitation to buy gold might be a reaction among investors akin to the deer being caught in the headlights. The true reaction – bolting for the woods – might be yet to come, as the chart above indicates.