Pacer ETFs President, Sean O’Hara, contends that gold should not be considered a wise long-term investment. He also responded to an investigation by the Department of Justice concerning UnitedHealthcare.
In response to former President Donald Trump’s proposed tariff plans, some of the largest banks in the United States and the United Kingdom have started transporting gold bars via commercial flights from London to New York City. Trump’s initiative aims to impose tariffs on U.S. trading partners, including a planned reciprocal tariff system expected to be operational by early April, as well as tariffs on the European Union, details of which remain unspecified. These factors have motivated banks to reposition their gold reserves.
The decision to transport gold has been influenced by a price difference between gold sold in London and New York. Since early December, the price of gold in London has been about $20 lower per troy ounce compared to New York, according to The Wall Street Journal. London is a principal venue for trading physical gold, whereas New York serves as a key hub for futures contracts. The banks’ relocation of gold from London to New York aims to mitigate potential losses or secure profits by adjusting their strategy in the futures market.
Major players like JPMorgan Chase and HSBC are seizing this opportunity in the physical gold market. According to reports, JPMorgan Chase plans to transport approximately $4 billion worth of gold from London to New York in February, as stated in a filing with CME Group’s Comex.
The logistical process involves flying the gold on commercial airlines, which is deemed the most cost-effective transportation method. This process also necessitates the use of armored vehicles and security personnel to ensure the gold’s safe delivery to its destination.
Amid concerns about the economy and Trump’s tariff plans, gold prices have reached unprecedented highs in recent months. On Thursday and Friday, gold futures were trading at approximately $2,950, marking a rise of more than 10% in 2025 and an increase of over 44% compared to the previous year.