Wall Street Billionaire and Trading Legend Says Gold Could Hit $5000 by 2028

There has always been a degree of scorn from Wall Street and so-called investment professionals over the years for those who invested in gold. They are laughed at as “gold bugs.” The argument against the precious metal, even though gold is one of the most significant financial assets in the world and central banks have been loading up on the commodity, is that it is not typically a tradeable investment. Warren Buffett owns zero and has previously said it is an investment with “no utility.”

Wall Street billionaire and genius John Paulson gained recognition for predicting and profiting from the 2007 subprime mortgage crisis by shorting the U.S. housing market. He effectively made billions when he bet against mortgage-backed securities. He now feels that gold could reach $5,000 by 2028. The price forecast is currently one of the most bullish, yet banks and others have moved to increase their estimates after gold recently hit a record high just above $3,500. Goldman Sachs is also very bullish, and its analysts expect the price of gold to rise to $3,700 per ounce by the end of 2025 and potentially reach $4,000 per ounce by mid-2026.

We screened our 24/7 Wall St. commodity database, looking for the top mining companies that pay dependable, sometimes substantial, dividends. Four top stocks make the cut, all rated Buy at top Wall Street firms.

Why do we cover gold-mining stocks?

The case for gold and gold miners is compelling for two reasons. First, gold can serve as a strategic hedge against inflation. Second, some top miners extract silver and other essential commodities for industrial applications. Spot gold has surged to all-time highs, surpassing the levels reached in 2020. From a technical perspective, the gold market appears poised for a potential massive breakout, particularly if the ongoing Middle East and Ukraine conflicts persist or escalate, and trade becomes a more significant issue.

Agnico Eagle Mines

This top stock is one of Wall Street’s most preferred North American gold producers. Agnico Eagle Mines Ltd. (NYSE: AEM) is a Canada-based and senior gold mining company engaged in producing precious metals from operations in Canada, Australia, Finland, and Mexico, with a pipeline of exploration and development projects.

Its operations include:

• Canadian Malartic Complex
• Detour Lake
• Fosterville
• Goldex
• Kittila
• La India
• LaRonde Complex
• Macassa
• Meadowbank Complex
• Meliadine
• Pinos Altos

The company’s exploration sites include Barsele, Delta, Dubuisson, El Barqueno, Hammond Reef, Hope Bay, Jennings, Morelos Sur, North Madsen, Northern Territory, Pandora/Wood-Pandora, and others.

The Canadian Malartic complex is located in the town of Malartic, 25 kilometers (km) west of Val-d’Or in northwestern Quebec.

The Fosterville mine is a high-grade, low-cost underground gold mine located 20 km from Bendigo.

It also owns a 100% interest in all its properties (128,680 hectares) in the province of Quebec. Its projects include Marban Alliance, Horizon, Alpha, Launay, Peacock, and others.

Barrick Gold

This stock is another top contender in the sector and offers a very promising entry point. Canada-based Barrick Gold Corp. (NYSE: GOLD) is engaged in producing and selling gold and copper and related activities, such as exploration and mine development.

It has ownership interests in producing gold mines that are located in:

• Argentina
• Canada
• Côte d’Ivoire
• The Democratic Republic of the Congo
• The Dominican Republic
• Mali
• Tanzania
• The United States

It holds ownership interests in copper mines in Chile, Saudi Arabia, and Zambia.

Its operations include:

• Nevada Gold Mines
• Bulyanhulu
• Hemlo
• Jabal Sayid
• Kibali
• Loulo-Gounkoto
• Lumwana
• North Mara
• Porgera
• Pueblo Viejo
• Tongon
• Veladero
• Zaldivar

Its Bulyanhulu operation is located in northwest Tanzania, approximately 55 kilometers (km) south of Lake Victoria and 150 km southwest of the city of Mwanza.

The Hemlo operation is underground and located north of Lake Superior on the Trans-Canada Highway, approximately 35 km east of Marathon, Ontario.

DRDGold

While off the radar, this is a small-cap mining gem. DRDGold Ltd. (NYSE: DRD) is a gold mining company that operates a surface gold tailings retreatment business in South Africa. The company’s business includes:

• Ergo
• Far West Gold Recoveries (FWGR)
• Hot Button Features
• Resources and Reserves

The Ergo business is a surface gold retreatment operation that treats old slime dams and sand dumps south of Johannesburg’s central business district and the East and Central Rand goldfields. The operation comprises three plants. The Ergo and Knights plants operate as metallurgical plants.

The Ergo plant treats around 1.7 Mtpm of material.

The City Deep plant is a pump/milling station feeding the metallurgical plants.

The DRDGold FWGR unit is a surface gold retreatment operation that treats old slime dams in the West Rand goldfields. It is located near Carletonville in South Africa’s Gauteng province. Mineral Resources consist of sand dumps, slimes dams, silted areas, and dams.

Newmont

This is the largest mining company we cover and is a timely buy for more conservative investors. Newmont Corp. (NYSE: NEM) is a gold company that produces copper, zinc, lead, and silver. Its portfolio of assets and prospects is anchored in mining jurisdictions in:

• Africa
• Australia
• Latin America & Caribbean
• North America
• Papua New Guinea

Its African operation is Ahafo.

The Australian operations include Boddington, Cadia, and Tanami.

The Latin America and Caribbean operations include:

• Cerro Negro
• Merian
• Penasquito
• Pueblo Viejo JV
• Yanacocha

Its North American projects include:

• Brucejack
• Cripple Creek & Victor
• Eleonore
• Musselwhite
• Nevada Gold Mines JV
• Porcupine and Red Chris

Its Papua New Guinea projects include Lihir. The Ahafo mine is located in the Ahafo region, approximately 290 kilometers northwest of Accra, the national capital.

The Boddington mine operates within the Saddleback greenstone belt in Western Australia. Boddington is located 16 km from the rural farming town of Boddington and 130 km from Western Australia’s capital city.

Asset Allocation and Gold

Proper asset allocation should always include at least a single-digit percentage holding of precious metals like gold and silver. Not only do they hedge against inflation, which could be significant now and in the long term, but they can also be invaluable if the market enters a correction or bear market mode, as they tend to trade inversely to markets.

The SPDR Gold Shares ETF (NYSE: GLD) is one of the best pure plays on gold for investors. The trust that sponsors the fund holds physical gold bullion and some cash. Each share represents one-tenth of an ounce of gold. However, the fund does not pay a dividend.

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