JPMorgan Chase to Deliver $4 Billion in Gold as Trump Sparks Bullion Rush
Amidst surging gold prices and impending import tariffs, JPMorgan Chase & Co. has declared its intention to deliver over $4 billion worth of gold bullion to fulfill futures contracts in New York.
As the world's leading bullion dealer, JPMorgan was among the institutions that announced plans to deliver gold against CME Group's Comex contracts expiring in February. These delivery notices, totaling 3 million troy ounces, constitute the second-largest on record since 1994.
The delivery surge is fueled by fears of tariffs following President Trump's election, leading Comex gold futures prices to exceed spot prices in London. This has created an arbitrage opportunity for banks that can rapidly transport bullion between major trading hubs.
Similar dynamics have emerged in other Comex contracts, resulting in the first instances of silver being airlifted into the US, as its premium has become significant enough to justify airfreight costs.
While physical delivery is typically a small fraction of Comex's daily gold trade, exchange inventories have surged by $39 billion since the US election. It remains unclear whether JPMorgan and other banks are leveraging arbitrage opportunities or exiting short positions through these deliveries.
JPMorgan and CME Group declined to comment. Deutsche Bank, Morgan Stanley, and Goldman Sachs are among other entities involved in the substantial delivery notices.