Billionaire Speaks Out: Gold's Long-Term Bull Market Is Still in Its Early Stages, Going All-In on Gold Mining Stocks

Huitong News, July 24—— Gold prices have failed to hold above $4,100/oz, and are fluctuating at a key support level. Renowned investor Paulson believes that the long-term bull market for gold is still at an early stage, with weakening confidence in fiat currencies and continued gold purchasing by central banks providing long-term support. His investment strategy has changed; in 2022, he fully exited physical gold holdings, and now his $3.11 billion portfolio is heavily allocated to gold mining stocks, with a focus on early-stage exploration companies. With Donlin Gold being incorporated into NOVAGOLD, he believes the earning potential of mining stocks significantly outpaces that of spot gold.

Gold prices have continued to fail to hold above $4,100/oz, currently consolidating within a key support range. John Paulson, founder of Paulson & Co. and prominent investor, stated,

Paulson's investment thinking has notably shifted. In former years, he heavily invested in gold ETFs, fully exited physical gold positions in 2022, As his interest in the Donlin Gold project has been merged into NOVAGOLD, he sees the earning potential of mining stocks as much higher than physical gold. Donlin Gold’s resource size is huge and its grade outstanding, making it a core focus of his allocation.

Paulson Is Long-Term Bullish on Gold: Central Bank Gold Buying Reshapes Reserve Systems

As gold prices remain pressured below $4,100, veteran gold bull Paulson maintains an optimistic outlook, believing the long-term upward trend for gold is far from over.

His core logic rests on two points: first, the public’s confidence in fiat currency is gradually waning, leading to continuously rising demand for gold as an alternative asset; second, global central banks are steadily increasing gold reserves. Amid a more fragmented international financial landscape and countries moving to diversify foreign reserves, gold is evolving into a premium reserve asset, gradually taking market share from fiat reserves. Multiple surveys also confirm that central banks continue to prioritize gold as a reserve, laying a long-term price floor for gold.

Major Shift in Investment Strategy: From Physical Gold to Mining Companies

Over the past 20 years, Paulson has been a prominent gold bull in the market, but his portfolio structure has undergone multiple adjustments. In 2009, he made sizeable purchases of GLD gold ETF, with holdings peaking at over 31.5 million shares, but fully exited physical gold-related positions in Q2 2022.

According to the latest disclosures, his $3.11 billion investment portfolio is now almost entirely allocated in gold and precious metals mining companies. Paulson's key view is:

Major Asset Integration, Bet on NOVAGOLD and the Donlin Gold Project

Recently, NOVAGOLD announced an agreement to acquire Paulson’s 40% stake in the Donlin Gold project via an all-stock transaction. After the deal, NOVAGOLD’s original shareholders will own 65% equity of the combined entity, Paulson & Co. will gain 40% economic rights, its voting rights capped at 19.99%, and Paulson will be appointed co-chairman.

Donlin Gold ranks among the world’s top undeveloped gold projects, with proven and controlled reserves of about 40 million ounces, an average grade of 2.22 grams/ton—well above industry average. Paulson bluntly said: NOVAGOLD’s management stated that the integration will streamline its operating structure and the company’s next step is to update the project feasibility study.

Conclusion

In summary, although gold remains stuck near the $4,100 level in the short term, Paulson firmly believes the bull run for gold has only just begun. Central bank gold buying and declining trust in fiat currency remain two effective long-term drivers.

Of particular note is his strategy shift: abandoning direct bets on spot gold and going all-in on mining stocks, with a focus on early-stage explorers. The integration of Donlin Gold is the core move of his current layout. This sends a clear signal—midway through a bull market, capital begins to chase leveraged mining assets. Going forward, it’s worth watching both whether gold can break past the $4,100 resistance and how mining companies manage project advancement and cost controls, as these will be key variables affecting mining stock performance.


Spot Gold Daily Chart Source: Easy Huitong

At 12:06 on July 24 (UTC+8), spot gold was quoted at $4,029.71/oz