John Paulson Predicts Long-Term Gold Bull Market

Hedge fund manager John Paulson stated on CNBC's "The Exchange" that gold has entered the early stages of a long-term bull market. Paulson argues that gold is becoming the most apt reserve currency in the world, replacing fiat currencies as faith in paper currencies declines. He attributes this growth to broadening private sector demand and continued accumulation by central banks.

Paulson noted that since he pivoted to gold in 2009, prices have roughly quadrupled and briefly exceeded $5,000 before pulling back. He recommends investing in early-stage gold mining stocks rather than bullion to achieve leveraged exposure.

These comments coincided with an announcement that NovaGold Resources will acquire the 40% stake in the Donlin Gold project held by Paulson Advisers. Paulson, who serves as co-chairman of NovaGold, highlighted the company's 40 million ounces of indicated and measured resources as a prime example of how to invest in the gold market.