Dimon says it’s ‘semi-rational’ to hold gold in portfolio

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 $5,000, $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.”

Gold, which traded below $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 $4,142.94 an ounce, extending its gain this year to 58%.

“Asset prices are kind of high,” Dimon said, and “in the back of my mind, that cuts across almost everything at this point.”

Last week, billionaire Citadel founder Ken Griffin said investors were starting to view gold as safer than the dollar, calling the development “really concerning.”

(By Heather Landy)