John Paulson, a billionaire investor, predicts that gold prices could reach nearly $5,000 an ounce by 2028. Paulson is known for his successful bets during the subprime mortgage crisis. He believes that increasing demand and limited supply will drive the price of gold higher.
Gold is often seen as a safe investment, especially during times of economic uncertainty. Paulson’s prediction comes as inflation fears continue and global tensions remain high. His views have influenced markets in the past, so financial analysts will be watching closely.
The forecast comes at a time when world stocks have been volatile after the U.S. economy shrank. This has increased demand for assets like gold. Paulson also thinks that as central banks and people look for more stable investments, gold will become more important globally.
Gold’s growing global significance
He noted that during the war in Russia, their physical gold was safe while their cash was taken. This has made other central banks worried about similar risks when dealing with the U.S. Global trade uncertainty, partly due to U.S. tariffs, is another factor supporting higher gold prices.
“The best place to go if your faith in the U.S. dollar goes down is gold as a reserve currency,” said Paulson. Paulson’s firm is the top shareholder in Perpetua Resources Corp, a gold and antimony mining company in Idaho. He also recently bought a 40% stake in Alaska’s Donlin gold project, which is thought to have 39 million ounces of gold.
Other analysts also predict higher gold prices. Bernard Dahdah from Natixis thinks prices could reach $4,000 per ounce this year if confidence in the U.S. dollar keeps falling. Dahdah said “Soaring gold prices have and will continue to greatly benefit major gold producers.” Analysts from UBS Group AG believe buying gold stocks could be more profitable than bullion or coins over time.
The mix of geopolitical tensions, changing investor confidence, and central bank moves are setting the stage for a long and potentially profitable bull market in gold.