Novagold (AMEX:NG) Iamgold (TSE:IMO) Barrick Gold (NYSE:ABX) (TSE:ABX) Randgold Resources (Nasdaq:GOLD) Added by Paulson & Co

John Paulson continues to like the gold market, and he backed that up with four new positions for his Paulson & Co. hedge fund, adding Novagold (AMEX:NG), Iamgold (TSE:IMO), Barrick Gold (NYSE:ABX) (TSE:ABX) and Randgold Resources (Nasdaq:GOLD), growing the number of gold investments to his already-significant gold positions in SPDR Gold Shares (NYSE:GLD), which is the largest holding in the fund, Kinross Gold Corp. (NYSE:KGC), and AngloGold Ashanti Ltd. (NYSE:AU).

Competitor George Soros, in my opinion, wrongly, reduced his stake in SPDR Gold Shares (NYSE:GLD) by just under 10 percent.

I believe we are far from any type of gold bubble as Soros has stated in the past, and think he's misreading the market by only measuring the idea of a bubble by the price of gold going up, rather than who it is that is investing in it.

There won't be a gold bubble until a huge number of non-institutional investors enter the gold market, and then the underlying fundamentals will have to had reached their full play before a bubble can be formed, let alone burst.

A bubble happens when there is no reason for the price of something going up. If there is a reason, it doesn't matter if the price is bid up, as it is based on fundamentals, whether or not the investors know it or not.

Not only is there very little to cheer about in the global economy, including the U.S., but there is more pressure and danger now than there ever was with the housing bubble and banking bailouts.

Now we're talking of entire countries being bailed out, and inflation in China being a real threat to demand for raw materials, which many around the world have been counting on for growth and an eventual and sustainable economic recovery.

All that may be off the table, and consequently, gold and gold mining companies should continue to go up in value and price as people continue to look for a safe haven outside of paper currencies.