A controversial investor known for making billions from the 2008 financial crisis thinks that the spot price of gold will continue steadily rising for years to come.
In an interview with Reuters this week, John Paulson said that international trade tensions and central bank gold stockpiling should help send the dollar value of the precious metal up to “the high US$4,000 range” per ounce by 2028. He believes that the commodity is the best safe haven asset for people to have if they are wary about the American dollar’s future.
“As central banks and people look to put their money in a more stable source, I think gold will increase its position in the world,” Paulson stated.
He also says that western nations freezing Russia’s foreign reserve holdings after the invasion of Ukraine in 2022 is a major catalyst for central banks buying up bullion.
“So that caused other central banks to wake up and say ‘What happens if there’s a conflict with the U.S.? Could the US keep our treasuries, and all our savings would disappear?’” Paulson added.
He is currently the top shareholder in Idaho’s gold and antimony mining company Perpetua Resources Corp. (TSE: PPTA) (NASDAQ: PPTA).
The New York-based hedge fund manager also just bought a 40 per cent stake in Alaska’s Donlin gold project held by NovaGold Resources Inc. (TSE: NG) (NYSEAMERICAN: NG). This site is estimated to hold 39 million ounces. Paulson’s investment firm currently holds an 8.1 per cent stake in the company.
Read more: NovaGold Resources and billionaire John Paulson go in on Barrick Gold’s Donlin project
Not the only bullish prediction to make headlines
Natixis senior commodities analyst, Bernard Dahdah, thinks gold could ascend to US$4,000 per ounce by the end of the year should investors continue losing faith in the U.S. dollar. He made that assessment in his latest gold analysis.
Investors continuously pulling more cash out of money market funds (MMF) than they are putting in is the primary driver, he says.
“Recent data suggests the sharpest outflow from U.S. MMFs [chart 07, -US$125 billion, week 16 April] since the financial crisis, indicating a lack of trust in U.S. Treasuries,” the Natixis analyst explained. “Our view is that this has come to benefit gold amidst a growing view that it is the only ‘traditional’ safe-haven asset left.”
Dahdah’s investment bank is headquartered in Paris, France.
Soaring gold prices have been and will continue to be highly beneficial for major gold producers like Barrick Gold Corp (TSE: ABX) (NYSE: GOLD) (ETR: ABR), Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) (FRA: WCLA) and Kinross Gold Corp (TSE: K) (NYSE: KGC) (ETR: KIN2).
The Swiss bank UBS Group AG (NYSE: UBS) (SWX: UBSG) recently said that buying up gold stocks was even better than buying bullion or coins.
John Paulson sees gold soaring to US$5,000 by 2028. 🪙
Backing Perpetua Resources, NovaGold, and betting on America’s mining renaissance.
Is the next gold rush already underway? #Gold #Mining #Antimony $PPTA $NG pic.twitter.com/7xWVh1T7tF
— Juniorstocks.com (@Junior_Stocks) April 29, 2025
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