Wall Street crashes. See Part A. Other bourses around the world fall heavily too in its wake. In the first weeks or months afterwards, currencies gyrate unpredictably in value against each other. Consequently all forms of money are moving relative to each other, and are subject to panic flows of capital as investors seek a, now illusory, safe haven. Bond yields too gyrate at first, because of the same uncertainty in the interest rate outlook and the impossibility at this stage of assessing risk.
World begins to slide into economic contraction.
Commodity prices fall. Over the next months the CRB Index falls below 150, perhaps much lower. Interest rates and the yield on safe bonds, after the initial volatility, trend down. High quality bonds soar as yields fall. Gold gets off to a slow start due to poor sentiment, but then starts to do well as it is realised that it is increasing in purchasing power, and has become a store of value again.