John Paulson, the hedge fund manager who made his name betting against the U.S. housing market ahead of the 2008 financial crisis, believes gold is only beginning a multi-year rally that could reshape global currency dynamics.
Speaking on CNBC’s “The Exchange” Wednesday, Paulson said he sees the precious metal in “the early stages of a long-term bull market,” driven by eroding confidence in traditional fiat currencies. His outlook reflects a view that structural economic forces—rather than short-term trading opportunities—will continue pushing gold higher.
“As people lose faith in paper currencies, gold as an alternative will continue to grow,” Paulson explained. The billionaire investor pointed to broadening demand across both official and private sectors as evidence the shift is already underway.
From Subprime to Gold
Paulson’s prescient wager against subprime mortgages ranks among the most profitable trades in Wall Street history. After that success, he pivoted to gold in 2009, arguing that massive fiscal and monetary stimulus deployed during the financial crisis would eventually weaken the dollar. That call has proven remarkably accurate: gold prices have roughly quadrupled since then, recently crossing the $5,000 threshold before moderating.
According to Paulson, the factors driving gold’s ascent remain intact. Central banks worldwide have been steadily adding to their gold reserves, while private-sector interest has grown in parallel. “Gold is becoming the most apt reserve currency in the world, replacing fiat currencies,” he said. “The demand from central banks, for instance, has continued to grow, as has the private sector.”
Miners Offer Leverage
While bullion itself provides direct exposure to gold’s price movements, Paulson argued that investors seeking greater upside should consider gold mining companies—particularly those with significant undeveloped reserves. “I think the greatest way to invest is to invest in early-stage gold stocks,” he said.
His comments came as NovaGold Resources announced plans to acquire Paulson Advisers’ 40% stake in the Donlin Gold project in Alaska. Paulson, who serves as co-chairman of NovaGold, highlighted the company’s resource base as an example of the leverage miners can offer. With 40 million ounces of indicated and measured gold resources and reserves at a market capitalization of $4.2 billion, he characterized NovaGold as an attractive way to play the metal’s rise.
“I think the best way to play gold is through stocks like NovaGold, if not NovaGold itself,” Paulson said.
The investor’s bullish stance on gold comes amid ongoing debates about inflation, currency stability, and the role of precious metals in modern portfolios. Whether his latest call proves as successful as his mortgage short remains to be seen, but his track record ensures the investment community will be watching closely.
Source: www.cnbc.com — https://www.cnbc.com/2026/07/22/john-paulson-says-we-are-in-early-stages-of-a-long-term-bull-market-for-gold.html
This article is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Do your own research and consult a licensed professional before making financial decisions.
