"Wall Street God of Short Selling" Paulson: Central banks around the world will continue to buy gold, and gold is "moving towards a new valuation level"
Since the beginning of this year, gold has risen nearly 30%. Paulson stated that large-scale purchases by central banks have accelerated the rise in gold, believing that "the main driver of gold demand is central banks attempting to gradually diversify from paper currency to gold as a reserve currency, and this situation will not change."
On April 22, it was reported that hedge fund manager John Paulson, known as the "God of Short Selling on Wall Street," stated that central banks will continue to buy gold to diversify the risks of paper currency amid political and economic turmoil.
Since the beginning of this year, gold has risen nearly 30%, outperforming almost all other major asset classes. Paulson indicated that the large-scale purchases by central banks are driving the accelerated rise in gold, and he believes:
"The main driver of gold demand is that central banks are trying to gradually diversify from paper currency to gold as a reserve currency, and this situation will not change."
The report also mentioned that as one of Wall Street's most steadfast supporters of gold, Paulson stated that as investors flee from U.S. stocks, bonds, and the dollar to safe-haven assets, while the shadow of a global trade war looms over the economic outlook, gold is " moving towards a new valuation level."
In an interview, Paulson stated: "This trend will continue, and its intensity will depend on political developments." On April 22, after Trump repeatedly called for the Federal Reserve to cut interest rates immediately, spot gold briefly broke through $3,500, reaching a historic high.
Global Central Banks' Massive Gold Purchases
In recent years, global central banks have continued to purchase gold in large quantities, becoming one of the main factors driving the significant rise in gold prices.
According to data from the World Gold Council, the total amount of gold purchased by global central banks in 2024 reached 1,045 tons, exceeding 1,000 tons for the third consecutive year.
Entering 2025, the momentum of gold purchases by global central banks continues. Data shows that in January, global central banks net purchased 18 tons of gold; in February, global central banks net purchased 24 tons of gold.
The World Gold Council stated that the ongoing trend of gold purchases against the backdrop of increasing geopolitical risks indicates the important strategic significance of gold in official foreign exchange reserves