JPMorgan CEO Dimon’s Analysis of Gold and the Market

Jamie Dimon's Gold Comment

JPMorgan Chase & Co. CEO Jamie Dimon pointed out that they are in a period where gold investment makes sense. However, he refrained from making a definitive comment on whether the precious metal is currently overvalued.

Attention to Gold Investment Efficiency

Speaking at a conference in Washington on Tuesday, Dimon said, “I am not a gold buyer — owning gold costs 4%. However, in such an environment, gold prices could rise to 5,000, 10,000 dollars. The situation we are in is one of the few moments when holding gold in a portfolio is semi-rational.”

Market Assessments

Dimon noted that asset prices are generally high, adding that “this situation is affecting almost everything right now.” Just two years ago, gold was trading below 2,000 dollars, and due to inflation concerns and geopolitical uncertainties, the demand for safe-haven assets increased among investors.

Increase in Gold Prices

Data from December shows that as of Tuesday, gold prices have risen by 0.8% to 4,142.94 dollars per ounce, bringing its gains for the year to 58%.

Other Investor Opinions

Last week, billionaire investor Ken Griffin, founder of Citadel, stated that investors have started to see gold as safer than the dollar, deeming this situation “truly concerning.”

Bankruptcies and Economic Developments

Dimon also commented on the bankruptcies of U.S. auto parts supplier First Brands and car rental company Tricolor Holdings. “I probably shouldn’t say this, but when you see one cockroach, there are likely many more. Everyone should be warned about this.” he said.