Billionaire John Paulson is now making big bets on gold.

Paulson became famous for last year for making over $2 billion dollars betting against US real estate and foreseeing the financial banking collapse.

Paulson is now launching a gold hedge fund that will buy gold shares and various investments related to gold.

Paulson is worth $6 billion and is among the largest and most famous hedge fund managers in the world.

He already has bought big sticks in mining companies Kinross and Anglogold.

Gold is now over $1,100 a price. Just a few months ago it was under $1,000 and some people were getting a lot of press for predicting a collapse in gold prices and a resumption of the bear market in US stocks.

They have been proven wrong. Just the other day gold made a new high and so did the DOW.

Successful investing means keeping yourself on the right side of the market and knowing what to focus on to do that. You don't do that by just listening to every emotional call out there, but paying attention to what really makes you money.