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The post-crash gold bid of 1987 unwound through 1988: as the feared recession never arrived, gold slid from about $487 to close near $410.
Monthly path for 1988, anchored to the real open ($ 487.00), the high in January, the low in September, and the close ($ 410.00). The dashed line marks the yearly average; intra-year movement between anchor points is illustrative.
Year-over-year, gold fell -15.81% versus its 1987 close of $ 487.00.
1988 was the year the crash insurance expired worthless. Investors had bid gold up toward $500 after Black Monday in October 1987, positioning for a depression-style aftermath. Instead the economy barely blinked: growth ran hot, corporate profits recovered, and by mid-1988 the Federal Reserve was raising interest rates to cool things down rather than cutting them to fight a slump.
For gold that combination — no crisis, rising rates, firming dollar — was corrosive. The price eroded from about $487 in the first trading days of January to roughly $395 by September, with rallies repeatedly capped by mining companies selling future production forward, a practice that boomed in the late 1980s. The metal ended the year near $410, down almost 16%, its worst showing since 1984.
The economic collapse widely predicted after Black Monday never materialized — growth stayed strong.
Gold peaked near $487 in early January and declined for most of the year, bottoming around $395 in September.
The Federal Reserve began raising rates again in 1988 to head off inflation, lifting the dollar.
Forward selling by gold miners accelerated, adding a persistent source of supply.
Gold averaged about $437 per ounce in 1988, falling from roughly $487 in January to a September low near $395 before closing around $410.
The recession feared after the 1987 stock-market crash never came. Strong growth, Fed rate hikes, a firmer dollar and heavy producer hedging steadily drained the crash premium out of the price.
Gold's 1988 high was about $ 487.00 per troy ounce, reached in January.
The average gold price in 1988 was roughly $ 437.00 per troy ounce — it opened near $ 487.00 and closed around $ 410.00.
Gold fell about 15.8% over 1988, between a low of $ 395.00 and a high of $ 487.00.
Historical figures are approximate annual values shown for educational analysis and may differ from other sources. This is not financial advice — see our disclaimer.