John Paulson bets on gold miners as bullion rallies

Paulson argues that gold is increasingly viewed as a superior reserve asset, particularly as global investors lose confidence in traditional fiat currencies. Central bank demand remains a cornerstone of this thesis, with institutions globally shifting their reserves toward the metal to hedge against financial fragmentation. While Paulson was once a major holder of SPDR Gold Shares, he exited the physical gold market in 2022 to concentrate on mining stocks, which he believes offer better leverage for investors.

His strategy centers on junior exploration companies, a focus highlighted by a recent deal with NOVAGOLD. Under the agreement, NOVAGOLD will acquire Paulson’s 40% interest in the Donlin Gold project, one of the world’s largest undeveloped deposits. The project holds roughly 40 million ounces of measured and indicated resources. By taking a stake in the combined entity, Paulson secures a seat as Co-Chair alongside Thomas Kaplan, further aligning his firm's interests with the development of high-grade assets.