Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Housing savant Paulson now looks to gold

Paulson & Co. to buy shares of gold-related investments in 2010. Paulson to invest $250 million.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Hibah Yousuf, CNNMoney.com staff reporter

301 Moved Permanently

301 Moved Permanently

On Black Friday, what are you looking to get at a bargain?
  • Electronics
  • Clothing
  • Toys
  • Appliances
  • Jewelry

NEW YORK (CNNMoney.com) -- Billionaire John Paulson, who earned his hedge fund billions when he bet against the housing bubble, is waging a new noteworthy bet.

Paulson is investing as much as $250 million in a new gold fund next year.

His hedge fund, Paulson & Co., will launch the fund Jan. 1, 2010 and will buy shares of gold miners and make other investments related to the precious yellow metal, a source familiar with the firm's plans told CNNMoney.com. Paulson discussed the fund at a meeting with investors on Tuesday.

It will aim to outshine record-breaking gold prices, which have been hitting all-time highs recently as the dollar has weakened, fueling inflation fears.

Although the minimum investment for the gold fund in unknown, hedge funds usually require a minimum $1 million investment to get into the fund. Most of Paulson & Co. funds are focused on institutional investors.

Paulson, who is worth an estimated $6 billion and raked in $2 billion in 2008, invested in gold earlier this year when he purchased shares of AngloGold Ashanti Ltd. (AU) and Kinross Gold (KGC); about 10% of his $30 billion fund in gold-related investments.

Paulson also owns billions in gold exchange-traded funds and forward contracts, which have profited from the mounting gold prices. Gold hit a fresh record high near $1,150 Wednesday. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Black Friday 2015 in pictures Shoppers around the country braved the crowds to get their hands on the best Black Friday deals. More
Driving the ultimate in '50s Mercedes-Benz style The SC was the car that re-introduced Mercedes-Benz as a global luxury car icon. More
Driving the world's first car Driving a replica of the 1886 Benz Patent Motorwagen, the first internal combustion automobile. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play