JPMorgan Plans $4 Billion U.S. Gold Delivery

JPMorgan Chase & Co. is set to deliver gold bullion worth more than $4 billion against futures contracts in New York this February, as surging prices and the threat of import tariffs fuel a global rush to ship metal to the U.S., Jack Ryan and Jack Farchy reported for Bloomberg News.

The delivery notices—totaling 3 million troy ounces of gold—were the second-largest ever recorded in exchange data dating back to 1994. I Photo: Shkuru Afshar Wikimedia Commons

The bank, the world’s largest bullion dealer, was one of several institutions that declared plans to deliver bullion against contracts traded on CME Group’s Comex, which are set to expire in February.

The delivery notices—totaling 3 million troy ounces of gold—were the second-largest ever recorded in exchange data dating back to 1994.

Traders declared their intent to deliver an additional 1.1 million troy ounces, according to the latest CME Group notice. Concerns over imminent tariffs on imports following the election of U.S. President Donald Trump have driven gold futures on Comex significantly higher than spot prices in London.

Spot prices surged to record highs last week, but the additional premium on Comex has created a lucrative arbitrage opportunity for the few banks capable of quickly flying bullion between key trading hubs.

Similar pricing trends have emerged in other Comex contracts, with the price gap growing so large that traders have even begun flying silver into the U.S.—a rare occurrence, as the metal is typically too cheap and bulky to justify airfreight costs.

One industry veteran noted that this is the first time they have ever witnessed such a development.