"Wall Street God of Short-Selling" Paulson: The long-term bull market for gold has just begun, and gold mining stocks are the real key to making a fortune.

Billionaire hedge fund manager John Paulson, who rose to fame by shorting the US subprime mortgage crisis and then accurately betting on gold, recently stated that gold is currently in the early stages of a long-term bull market. In an interview, Paulson stated, "I do believe that we are at the start or early stages of a long-term bull market in gold. As people lose confidence in paper currency, gold as an alternative asset will continue to appreciate." He further explained that gold is becoming the world's most important reserve currency, gradually replacing fiat currencies, with demand for physical gold from global central banks and private sector continuing to expand. Looking back at Paulson's investment journey, he made one of the most profitable trades in Wall Street history by betting against the collapse of the subprime mortgage market, earning him the nickname "The Wall Street God of Short." He then turned his attention to gold in 2009, believing that the unprecedented fiscal and monetary stimulus policies following the financial crisis would ultimately weaken the US dollar. His prediction was proven correct, as international gold prices have soared approximately three times since then, reaching a historic high of $5000 per ounce at one point before pulling back. In terms of investment strategy, Paulson believes that investors will receive a better return from gold mining stocks compared to holding physical gold, especially large companies with significant undeveloped reserves. "I believe the best way to invest is in early gold stocks," he emphasized. At the time of making the above statements, Paulson, who serves as co-chairman, announced that NovaGold Resources (NG.US) will acquire 40% of the shares in the Alaska Donlin Gold project held by Paulson Advisers. Paulson promoted NovaGold as providing investors with leverage exposure to rising gold prices through its vast resource base. He listed data stating, "NovaGold has 40 million ounces of gold indicated and measured resources and reserves, and its current market value is only $4.2 billion. I believe the best way to invest in gold is through stocks like NovaGold." Recent market performance shows that gold futures have attracted new buying interest after a period of consolidation, while geopolitical tensions in the Middle East are also affecting market sentiment. However, analysts have differing opinions on the potential for further increases in gold prices. FXTM Senior Research Analyst Lukman Otunuga stated that although the weakening US dollar and buying on dips have injected fresh momentum into the gold bulls, potential bearish fundamentals may limit gains, especially considering the pressure from rising oil prices. Analysts from ING Groep NV Sponsored ADR pointed out in their report that this week's rebound "is more driven by fresh buying interest after a period of consolidation, rather than a substantial change in geopolitical or macroeconomic background." The report added that while tensions in the Middle East continue to support precious metals, the market is weighing the softening US economic data against inflation risks posed by rising energy costs.