BUSINESS

As Gold Prices Soar, JPMorgan Reportedly Reopening New York City Gold Vault

10/04/2010 09:09 am ET | Updated May 25, 2011

With gold prices hitting record highs, JPMorgan Chase is reportedly reopening a New York City gold vault it shuttered in the 1990s, the Financial Times reports.

Banks have been rushing to keep up with the market's gold storage needs, the FT reports, and Reuters reports that central banks Russia, China and the Philippines are also upping their supply of gold. The shiny metal is seen as a "safe haven" as the dollar weakens.

The nearly decade-year-long rise of gold prices may be petering out, however. Widely-followed economist Denis Gartman, who edits an eponymous investment letter, told Bloomberg "The level of participation in the gold market and the over-extended nature of the market may not be unprecedented, but it is shockingly high nonetheless. Gold "may continue higher, its continued strength means that the inevitable correction shall be violent and very severe," he noted.

Billionaire investor George Soros has also expressed skepticism about gold's rise. He called it "the ultimate bubble" last month.

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