LIVE: John Paulson Is Doing His First Television Interview On CNBC
This is Paulson's first TV appearance. He rarely does interviews.
Back in 2007, Paulson famously bet against the subprime housing crisis and became a household name. It was called the greatest trade ever.
His performance in the last two years though has been criticized, particularly the gold funds.
"We think we're back into our long term achievement returns right now," Paulson said.
Paulson said when the Fed got into QE1 he became concerned. Now we have QE2 and 3. He was looking for a currency alternative to protect against inflation.
"Although the Fed has printed a lot of money to date there is very little inflation," he said, noting that has caused the price to fall in the current environment. He referred to it as a "pause period."
He added that the rationale for owning gold has not gone away.
"We're at risk for having very high rates of inflation because of the amount of money that has been printed."
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