JPMorgan (NYSE:JPM) Adding Gold Miners to Portfolio

JPMorgan's (NYSE:JPM) Ian Henderson, who manages the $2.3 billion Global Natural Resources fund and the $2.9 billion U.K. Natural Resources, among others, has been increasing the funds' gold holdings, saying the gold market is at its best levels since the 1970s.

Gold mining companies are his primary focus, and he's added gold mining giants Barrick Gold (NYSE:ABX) (TSE:ABX) and Newmont (NYSE:NEM) to the portfolios of the above funds, and has been rewarded accordingly, with Barrick enjoying an 8.1 percent gain in Toronto so far in 2010, and Newmont rising 18 percent in New York.

Gold mining stocks are as cheap as they’ve been for a long time because for the first time in years they are making proper profits,” Henderson said.

Including other precious metals and gold, they account for 34.1 percent the holding in the funds as of the end of April.