Billionaire Investor John Paulson Sees Bullion Near $5,000 An Ounce By 2028: ‘I Think Gold Will Increase Its Position In The World’

Billionaire investor John Paulson reportedly stated that central bank gold purchases and global trade tensions could drive bullion prices to nearly $5,000 an ounce by 2028.

The projection comes at a time when gold prices hit a record high of $3,500 per ounce last week.

"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,” Johnson told Reuters.

Paulson highlighted the confiscation of Russia’s foreign reserve holdings following its invasion of Ukraine.

"When the war started, (Russia) kept their physical gold, that was safe, but all their cash - the paper reserves - were confiscated," Paulson said, according to the Reuters report.

"So that caused other central banks to wake up and say ... 'What happens if there's a conflict with the U.S.? Could the U.S. keep our treasuries, and all our savings would disappear?" he said.

Paulson also noted that the best place to turn to if faith in the U.S. dollar declines is gold as a reserve currency.

Last week, Novagold Resource Inc. (NG) and Paulson Advisers LLC signed an agreement to acquire Barrick’s 50% interest in Donlin Gold LLC for $1.0 billion in cash.

Under the terms of the transaction, Novagold will acquire a 10% interest in Donlin Gold LLC for $200 million, thereby increasing its ownership interest in the company from 50% to 60%. Meanwhile, Paulson will acquire a 40% interest in Donlin Gold LLC for $800 million.

Paulson considers Donlin Gold as one of the most attractive development gold projects in the world.

“With 39 million ounces of gold at double the industry average grade, and an optimal location in the prime jurisdiction of Alaska — already the second largest gold-producing state in the United States — we believe that the project could create value for decades to come,” he had stated.

Spot gold declined 0.51% on Tuesday to trade at $3,326 per ounce. The SPDR Gold Trust (GLD) traded 0.81% lower while the iShares Gold Trust (IAU) was down by 0.77%.

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