Yes, it's not been proven wise to trust JPMorgan but this gold is collateral deposited against margin and they can't do anything with it as they don't own it, yet.

This is one more significant nail in the coffin for those gold bears who argue that gold is a barbarous relic. It increases the likelihood of gold being part of some sort of new world reserve currency basket going forward and provides the possiblility of margin on stored gold which could partly be used to buy more gold based assets. This demonstrates another shift in the mainstream view toward gold.

To me this is a net positive.