With many investors starting to become true believers that gold still has a long way to go up, John Paulson, founder of Paulson & Co., has announced he's going to launch a new gold hedge fund January first, putting the seed money into the company himself of $250 million.
Paulson says he's going to buy assets primarily related to physical gold, including shares of gold miner stocks.
This isn't anything new for Paulson, who at this time is the largest investor in SPDR Gold Shares ETF (NYSE: GLD), a major way to invest in gold. Paulson also already owns shares in mining stocks as well. Paulson & Co. owns 31.5 million shares in SPDR Gold Shares, worth a hefty $3.24 billion.
Gold will continue to go up in price based on nothing other than the flawed monetary policy of the United States through the Federal Reserve. Politicians don't have the will at this time to make meaningful and lasting changes in the monetary policy, and other than Ron Paul, really have no understanding of the cause and effect of it.
Investor Jim Rogers has said recently that the price of gold should be standing at it inflation adjusted price of $2,000. Even so, he is in a holding pattern with gold at this time, saying he's not buying more gold, but he isn't selling either.
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