While The Stocks Are Climbing, Gold's Value Has Been Dropping

MIAMI (CBS4) - While Wall Street continues to set new records, investors are starting to pay a lot more attention to jumping back in to the stock market.

But that's proving to be bad news for the commodity markets.

While stocks are climbing, gold's been dropping.  

It's been an historic safe-refuge for investors in the worst financial times: gold. It's priced by the ounce on world markets and prices peaked during the continuing global recession two years ago.

But that was then and this is now.

With the Dow soaring past 15-thousand mark, financial planner Lane Jones said, "We're now starting to make new highs which is positive and I think there's a lot of folks slowly poking their heads back and coming back into markets"

As a result, commodity prices have been falling as investors move around their money. It seems the "glitter" is now off gold.

Since hitting its highest price over $1900 an ounce back in 2011, It dropped  down to its' current 12 month high of $1790 last October. It sunk to a yearly low of about 1350 last month.

So, what's it mean for the rest of us?

Cash-strapped consumers can still sell their gold jewelry. But with gold prices lower than a few years ago, it means you won't be getting as much money-back as you might expect. 

Wonder what's the best way to cash in on the record prices in the stock market? Some analysts say this may be a good time to sell off some high-priced stocks, take some profits, and consider building up your cash reserves.

"Stay balanced, some money in bonds, some money in stocks, money you need for future purchases in the next year or 2 keep it on the sidelines, don't go chasing returns," cautioned Jones.

Gold was still able to pick up some strength in Wednesday trading closing at $1473 an ounce. But that's down $427 dollars from its two year high.

Following Wall Streets' recent gains, our next investment and retirement quarterly reports should show solid gains.