Investing.com -- Billionaire investor John Paulson predicts that the price of gold could approach $5,000 an ounce by 2028, driven by central bank gold buying and global trade tensions. This optimistic forecast comes as other financial institutions, such as Deutsche Bank, are also adjusting their estimates following gold’s recent record high of just over $3,500 an ounce. Deutsche Bank anticipates that bullion could reach $3,700 an ounce by next year.

Paulson, who is the largest shareholder in Idaho gold and antimony developer Perpetua Resources, recently acquired a 40% stake in NovaGold’s Donlin gold project in Alaska from Barrick. When asked about his price expectations for bullion, Paulson suggested a high $4,000 range within the next three years.

Paulson believes that gold will gain more prominence in the global market as central banks and individuals seek more stable investments. He pointed to the recent seizure of Russia’s foreign reserve holdings by Western countries following the invasion of Ukraine as a potential motivator for central banks, particularly China’s, to invest more heavily in gold.

Paulson also cited ongoing global trade uncertainty, partially fueled by U.S. tariffs, as another factor supporting gold. He stated that gold is the best alternative if confidence in the U.S. dollar weakens.

Paulson, who has consistently invested in gold, expressed no interest in diversifying into copper or other metals, choosing instead to focus his efforts on gold. In Idaho, his company Perpetua, which received its federal mining permit in January, is seeking funding from the U.S. Export-Import Bank and has garnered support from the White House.

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