Toyota Motor Corporation (ADR) (TM), Nokia Corporation (ADR) (NOK) & Where to Put Your Money After Selling Gold

One reason for the fall is that international inflation is declining, which is weakening gold as a hedge against rising prices. Many of those who put their money in gold in the first place were predicting a surge of inflation. Dropping inflation is a sign of economic recovery, which many people find hard to believe is actually happening.

However, JPMorgan Chase & Co. (NYSE:JPM) set out in its own global consumer-price index that global inflation hit its high at 4% in 2011, and since that time it has gradually sunk. International prices in February were pegged at roughly 2.5% from the same time in 2012, JPMorgan Chase & Co. (NYSE:JPM) stated.

JPMorgan Chase & Co. (NYSE:JPM) also stated gold’s sell-off may continue as inflation continues to fall. The bank predicted inflation would move to 2% for the last half of 2013. However, the bank didn’t make predictions about the price of gold.

Another possible contributing factor to the decreasing price of gold is that the commodity is not looked to as frequently as it was before as a haven to place money. Now that the stock market has recovered substantially, many people are feeling comfortable putting their money back in stocks.

With the S&P 500 reaching new highs recently, it’s hard to ignore the lure of possible gains on the stock market. The number of people switching out of gold and back into stocks will benefit those who already own equity shares, as this influx of investors will stir up the price of many stocks.

The article Where to Put Your Money After Selling Gold originally appeared on Fool.com and is written by Phillip Woolgar.

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