I was wondering if the Race tech gold valve is neccessary for the back shock or not? I heard that with a rear shock when it is revalved it isn't needed. I just don't want to waste the money if I don't have to!
Not necessary for your shock, IMO. I had a gold valve in the back end of my KDX250, and it worked well, but your stock forks are much worse than your stock shock.
I also had a '90 KDX200, and for that bike, stiffer fork springs and the RT cartridge fork emulators will greatly improve your front suspension. If you have not fixed the forks yet, I would give that much higher priority than the shock.
If you have fixed the forks already and have some money to put toward other improvements, get a steering damper. Overall, it will help far more than a gold valve for the shock.
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