Paulson Sees Long-Term Bull Market for Gold Despite Current Headwinds
Billionaire hedge fund manager John Paulson believes that the current gold bull market is just getting started. Speaking on CNBC, he stated that the world's loss of faith in fiat currencies, particularly the dollar, will drive up demand for gold.
Paulson's assertion comes after a brief surge in safe-haven demand following the U.S.-Iran conflict, which pushed gold prices to nearly $5,500 an ounce in January. However, prices have since corrected and traded range-bound between $4,000 and $4,500 for several months.
The investor's confidence in gold is based on the growing distrust of fiat currencies. According to Paulson, as people lose faith in paper currencies, gold will continue to grow in value. He also pointed out that central bank demand for gold has continued to rise, with the European Central Bank confirming earlier this year that gold has surpassed Treasuries as the world's top reserve asset.