Not true. The money you put in the bank is usually then lent out to customer to buy the restaurant equipment, etc., and in a highly leveraged way. The money you spent to buy the gold is also recycled into the economy.
The problem is not that -- the problem is that when the economy contracts, businesses have excess capacity and don't need or want to borrow money from that bank. That's why the velocity is so low.
You’re right. I was talking from the perspective of the one who deposits his money in the bank or in his gold stash. From this perspective, the velocity of money is zero. Of course, if the bank use the deposited money to invest or to make loans, then the velocity ain’t zero from their perspective.