Wall Street banks on track for record $5 billion gold and silver trading windfall

The world’s largest investment banks are on track to rake in a record $5 billion from trading precious metals this year, fuelled by surging investor demand and wild swings in the prices of gold and silver.

Precious-metals desks at major Wall Street and global institutions generated historic earnings in the first half of 2026. JPMorgan Chase, the traditional heavyweight of the market, led the pack by making about $700 million from trading and handling precious metals in the first six months of the year, according to people familiar with the matter. The bank's previous best full-year performance in the sector was just over $1 billion, recorded during the pandemic-era market chaos of 2020.

But JPMorgan is facing stiffer competition as other major players bring in hundreds of millions of dollars. Deutsche Bank, which has made a high-profile return to the bullion market, generated more than $200 million from its precious-metals desk in the first half of the year, according to a person familiar with its performance.

Where the money is coming from

The $5 billion estimate, compiled by financial-services analytics firm Crisil Coalition Greenwich, would mark the highest annual revenue total on record for the industry.

Trading desks at Goldman Sachs, Bank of America, and Morgan Stanley have all capitalised on intense price swings. Geopolitical conflicts and trade tensions have caused deep market dislocations, creating ideal conditions for traders who thrive on volatility.

Angad Chhatwal, head of fixed income, currencies, and commodities at Coalition, told Bloomberg News that the surge has been "supported by elevated volatility and strong investor participation across both gold and silver markets."

The year started with a frenzy. In January, speculative buying pushed gold and silver to unprecedented highs. While prices have eased since then — partly because escalating conflict in the Middle East drove up energy costs and prompted fears of further monetary tightening — spot gold and silver remain at more than double their levels from the start of 2024.

Investors have also turned to high-risk tools like short-dated options and leveraged exchange-traded funds to amplify their bets, generating fat fees for the banks handling the trades. On top of that, banks have made lucrative profits through physical arbitrage, physically moving gold and silver bars between global trading hubs to cash in on regional price differences.

Infrastructure expansion in London

The boom is prompting several banks to push deeper into the market's physical infrastructure. A select group of institutions controls the vaulting and clearing services that underpin the London market, the world's largest bullion-trading centre.

Earlier this year, Citigroup became the first new bank to join this exclusive clearing group in a decade, joining JPMorgan, UBS, HSBC, and ICBC Standard Bank. Deutsche Bank and Morgan Stanley are also seeking to join, according to people familiar with the plans.

Despite the windfall, industry veterans are urging caution. Speaking at a London Bullion Market Association conference in Italy, Greg Frith, a senior precious-metals trader at Centalion Group, described the year as a record for many.

"But it’s no time to be complacent," Frith warned. "If you’re caught napping on the job, it’s all gone in a flash."