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It rarely makes sense to physically move that muchgold, because its so heavy and expensive to fly.
But J.P. Morgan the worlds largest bullion dealer clearly has their reasons.
To begin with, the announcement came on the heels of tariff announcements by President Donald Trump.
That made it affordable to physically fly the gold across the Atlantic, a rare phenomenon.
J.P. Morgan is hardly alone in bulking up their gold position, however.
Why have investors flocked to gold?Should you move money into it, too?
Tariff and Inflation Concerns
Tariffs tend to drive up the price of imported goods.
When prices go up in general, so do gold prices, broadly speaking.
That leads many investors to see gold as a hedge against inflation.
Ben Nadelstein ofMonetary Metalsnoted that gold has stood the test of time.
Gold has survived every political regime and monetary experiment thrown at it, Nadelstein said.
So what happens if the rest of the world stops playing by the dollars rules?
It could cause a collapse in the value of the dollar but not the value of gold.
New approaches to putting gold to work have started to change that.
But like every investment, it comes with risk.
Gold effectively delivered a total 0% return from 2010 to 2020 compared to a bull market in equities.
Financial planner Scott Sturgeon ofOread Wealthexpands on golds limitations.
Gold has no intrinsic value.
Its value is simply whatever the next person is willing to pay for it, Sturgeon explained.
Are some of them due for a correction?
Only time will tell.
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