Renowned portfolio manager and president of Paulson & Co believes gold performs especially well during times of strong inflation. The last time the parabolic movement was observed was in the 1970s, when there was a double-digit rise in inflation for more than two years.
The reason for this reaction is that there is only a very limited amount of investment gold available in the world. If, at the same time, a large amount of money is withdrawn from unprofitable investments and directed to the obvious alternative - gold, then the cost of the yellow precious metal will rise due to the imbalance of supply and demand in the precious metals market.
Accordingly, he considers gold to be a worthy investment today. According to Paulson, the recent strong increase in the money supply will cause further inflation, and in his opinion, it will be higher than current forecasts.