Gold, which traded below US$2,000 just two years ago, has outpaced gains in equities so far this century, reflecting investor demand for safe-haven assets amid inflation concerns and geopolitical unrest. It continued its torrid advance on Tuesday, climbing 0.8% to US$4,142.94 an ounce, extending its gain this year to 58%.
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said he sees some logic in owning gold, while declining to say whether he thinks the precious metal is overvalued after a historic run-up.
“I’m not a gold buyer — it costs 4% to own it,” Dimon said Tuesday at Fortune’s Most Powerful Women conference in Washington. “It could easily go to US$5,000 ($6,479.58), US$10,000 in environments like this. This is one of the few times in my life it’s semi-rational to have some in your portfolio.”
