John Paulson, lionized by many investors for his winning bet on the fall of the housing and financial markets, is now getting aboard the gold wagon.
The hedge fund manager told his investors that even at $1,150 an ounce, the bull run on gold GC-FTis just beginning, according to the Wall Street Journal.
His firm, Paulson & Co., plans to launch a fund January 1st dedicated to gold mining shares and other bullion related investments, the newspaper reported.
Mr. Paulson, who is estimated to be worth about $6-billion. His bet against real estate and banks between 2007 and 2009 reportedly netted his hedge fund about $20-billion.
On Thursday, the World Gold Council reported that demand for the precious metal increased 10 per cent in the third quarter from the previous three month period, driven by investors looking for a currency hedge and more jewellery purchases.
The price of an ounce of bullion fell for the first time in five days on Thursday, reined in by a stronger U.S. currency, which rose against the loonie, the euro and the yen.
