JPMorgan Chase expects gold to climb past $5,000 an ounce by the fourth quarter of 2026, a forecast tied to CEO Jamie Dimon's warning about elevated market risk. Investors weighing how to act on that call face a choice between bullion, mining stocks, and gold-focused streaming and royalty companies.
JPMorgan Chase's second-quarter earnings update carried a warning from CEO Jamie Dimon, who likened a series of risks to tectonic plates that could collide and trigger an economic earthquake. Against that backdrop, JPMorgan projects gold will climb above $5,000 an ounce by the fourth quarter of 2026, and that it could move even higher afterward.
Dimon's warning sets the backdrop
Dimon's comments were less a prediction than a caution that risk is elevated, partly because the stock market is trading near all-time highs. That context matters for how investors read JPMorgan's gold call: the bank isn't simply bullish on the metal, it's flagging gold as a hedge against the same risks Dimon is watching.
Bullion and mining stocks carry drawbacks
Buying jewelry means paying a steep markup, and jewelry isn't a great investment. Coin-store bullion avoids that problem but creates another: an ounce of gold stays an ounce of gold, offering no path to growth, plus the cost of storing it.
Many investors instead turn to gold mining stocks, which are leveraged to the metal's price because mining costs stay largely fixed. Once gold trades above a miner's all-in costs, profits climb quickly. But that leverage cuts both ways when prices fall, and running a small portfolio of mines carries its own operating risk.
Streaming and royalty firms offer an alternative
A different route is streaming and royalty companies such as Franco-Nevada, Royal Gold, and Wheaton Precious Metals, which supply capital to miners in exchange for the right to buy gold later at a price set below spot. That structure effectively locks in a profit for the streamers. Franco-Nevada holds investments in 446 assets, with 121 of them actively producing revenue, giving it broader diversification than most single-mine operators.
Royal Gold has raised its dividend for 25 straight years, and Franco-Nevada's streak stands at 19. Wheaton's payout is variable instead, meaning it would climb directly alongside gold's own price.
Source: The Motley Fool
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