Who is John Paulson? He is the founder and president of Paulson & Company.
He made billion of dollars for his hedge fund by betting against the U.S. housing market. Some of his key investments were shorts against U.S. and European banks with exposure to toxic mortgages.
He had had successes before that. But his most public claim to fame was that he was one of the few investors who clearly saw the collapse of 2008 before it arrived. It is by betting against the banks that had exposure to bad debts that he made his billions.
He is also bullish on gold.
In spite of the corrections and ups and downs we have seen in recent weeks, he recently told a UK news show that gold is going to $4,000.
And, as always, he is putting his money where his mouth is.
He invested $5 billion of his personal gains in gold in the beginning of 2010. By the end of 2010, Paulson is estimated to have earned a profit of approximately 30% from the increase in gold prices.
More recently, according to German magazine, Der Spiegel, Paulson has penned a deal with Deutsche Bank to have them invest one billion dollars in gold and oil.
Of course, not everyone agrees with him. Other notable hedge investors, like George Soros, are not nearly so bullish on gold.
As always, you have to look at what the professionals are doing with their own money, overlay that with your own beliefs and predictions, and then make a choice.
For myself, I think John Paulson is worth watching closely. His track record is impressive. In particular, he proved his ability to anticipate big changes in the market with his call on the meltdown of 2008.
If his call on gold prices, with his prediction that it will rise to $4,000 an ounce, is only half accurate, then now is still a very good time to buy gold.
You can buy gold coins and gold bars online at GovMint.com.