John Paulson Predicts Gold Prices Could Reach $5,000 by 2028 Amid Central Bank Buying and Global Trade Tensions
Billionaire investor John Paulson has projected that gold prices could approach $5,000 per ounce by 2028, citing increased central bank purchases and escalating global trade tensions as primary drivers. This forecast represents one of the most bullish outlooks among major market participants, surpassing even recent predictions from prominent financial institutions.
Central Bank Accumulation and Geopolitical Shifts
Paulson attributes the anticipated surge in gold prices to a significant uptick in central bank acquisitions of the precious metal. He points to the Western confiscation of Russia’s foreign reserves following the 2022 Ukraine invasion as a pivotal event that prompted other nations, particularly China, to reevaluate their reserve assets. The incident underscored the vulnerability of dollar-denominated reserves, leading to a strategic pivot towards gold as a more secure store of value.
“As central banks and people look to put their money in a more stable source… I think gold will increase its position in the world,” Paulson stated.
Diminishing Confidence in the U.S. Dollar
Global trade uncertainties, exacerbated by U.S. tariff policies, have further eroded confidence in the U.S. dollar. Paulson emphasizes that gold serves as a reliable alternative reserve currency, especially when faith in fiat currencies wanes. He notes that the best place to go if confidence in the dollar diminishes is gold, highlighting its role as a hedge against currency devaluation.
Strategic Investments in U.S. Gold Projects
Demonstrating his commitment to the gold sector, Paulson has made significant investments in U.S.-based mining projects. He is the largest shareholder in Idaho’s Perpetua Resources, which focuses on gold and antimony production. Additionally, Paulson recently acquired a 40% stake in Alaska’s Donlin Gold Project from Barrick Gold. These ventures align with a broader strategy to revitalize domestic mining and manufacturing, ensuring a stable supply of critical minerals for national interests.
Paulson’s projection of gold reaching near $5,000 per ounce by 2028 underscores a growing sentiment among investors seeking safe-haven assets amidst geopolitical and economic uncertainties. While his forecast is notably optimistic, it reflects underlying trends that could influence gold’s trajectory in the coming years.
As of April 30, 2025, gold prices have already surpassed $3,500 per ounce, indicating strong upward momentum. If central bank purchases continue at their current pace and global trade tensions persist, Paulson’s prediction may prove prescient.