"Wall Street Air God" Paulson: Gold's long-term bull market has just begun
Well-known American hedge fund manager John Paulson said he believes gold is in the early stages of a long-term rise. "I do think we are in the early stages or early stages of a secular bull market for gold," Paulson said in an interview on Wednesday. "As people lose confidence in paper currency, gold will continue to grow as an alternative." Paulson's bet on the collapse of subprime mortgages became one of the most profitable in Wall Street history. In 2009, he shifted his investment focus to gold. At that time, he suggested that the unprecedented scale of fiscal and monetary stimulus policies launched after the financial crisis would eventually weaken the dollar. Gold prices have roughly tripled since then, briefly topping the $5,000 mark before pulling back. The billionaire investor said the scope of demand for gold continues to expand: central banks continue to increase their gold reserves, while private sector allocation interest continues to rise. Paulson said: "Gold is gradually becoming the most suitable reserve currency in the world, replacing fiat currencies. For example, gold demand from central banks continues to grow, as does the private sector." Paulson also suggested that compared with directly holding physical gold, investors can obtain higher returns by investing in gold mining companies, especially those companies with large untapped mineral reserves. "I think the best way to invest is in gold mining stocks that are in the early stages of development," he said. Paulson's comments came as NovaGold Resource recently announced it would acquire Paulson Advisors' 40% stake in the Donlin gold project in Alaska. Paulson, who also serves as co-chairman of Nova Gold, said the company has considerable gold resource reserves, allowing investors to benefit from rising gold prices through leverage. "Nova Gold has 40 million ounces of proven and controlled gold resources and reserves, and the company's market value is only US$4.2 billion." Paulson said, "If you do not invest directly in Nova Gold itself, investing in such mining stocks is the best way to participate in the gold market." Open a futures account on Sina's cooperative platform, safe, fast and guaranteed