John Paulson: Gold Could Hit $4,000

Hedge fund manager and billionaire John Paulson said he sees gold prices moving in a range of $2,400 to $4,000 an ounce, citing double-digit inflation emerging by 2012.

Paulson, speaking at New York's University Club recently, said 80 percent of his assets are held in gold.

He added that the coming inflation will result in gold prices being pushed up even more.

Paulson also said the inevitable quantitative easing by the Federal Reserve could extend double-digit inflation out for serveral years.

It's possible it could be even more than that depending on the economy and the political pressure to interfere with it, which would result in even more stimulus. That would add to the desirability and value of gold.