Billionaire Investor John Paulson Doubles Down on Gold Miners Amid Soaring Gold Prices
Billionaire hedge fund manager John Paulson has demonstrated his confidence in gold mining stocks, as his firm, Paulson & Co., continues to allocate a significant portion of its portfolio to the sector.
Zinger Key Points
- The Paulson & Co. fund is heavily invested in mining stocks which together make up more than 33% of the total portfolio.
- Paulson & Co.’s largest gold miner holding is a $231.6 million stake in Perpetua Resources, up nearly 300% this year.
A History of Big Bets
Paulson gained fame for his bold prediction of the 2008 financial crisis, earning approximately $20 billion by shorting subprime mortgage bonds. Since then, he has maintained a long-standing interest in gold, often citing it as a hedge against economic instability and inflation.
With gold prices surging over 29% in 2024, Paulson’s portfolio moves have drawn the attention of investors keen to follow his lead.
Key Holdings in Gold Miners
Paulson & Co.’s portfolio reveals a strong focus on mining stocks, which account for more than 33% of its total investments. Among its holdings, the fund’s largest gold-related position is a $231.6 million stake in Perpetua Resources Corp. (PPTA), a company focused on the Stibnite Gold Project in Idaho.
Perpetua Resources has been a standout performer, with its stock price soaring nearly 300% in 2024, reflecting both the company’s operational progress and the broader rally in gold prices.
Other Investments
While gold miners dominate a significant portion of Paulson’s portfolio, his firm also holds stakes in healthcare and financial services companies, underscoring a diversified investment approach.
Market Implications
As gold continues its upward trend, investors are closely monitoring Paulson’s moves in the mining sector, considering them a potential signal for broader market opportunities.
Stay tuned for further updates on Paulson’s investment strategy and how it aligns with global market dynamics.
The fund maintains a $120 million stake in SilverCrest Metals Inc.
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which operates the Las Chispas Mine located in Sonora, Mexico.
Additionally, the fund holds two penny stock positions:
Gold Resource Corporation (GORO), with operations primarily in Mexico and Nevada, and Northern Dynasty Minerals Ltd. (NAK), focusing on the Pebble Project in Alaska.
Other notable gold mining holdings include:
Newmont Corporation (NEM), Barrick Gold Corporation (GOLD), and Kinross Gold Corporation (KGC), rounding out the portfolio’s core gold investments.
Interestingly, the fund exited its position in Hecla Mining Company (HL), selling approximately 3 million shares during Q4 of 2024.
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