Billionaire hedge fund manager John Paulson has plans to invest as much as $250 million in a new gold fund he is going to establish.

A person familiar with the plan informed on the condition of anonymity that the new fund, which will work under Paulson & Co., in gold miners and other investments related to bullion.

It was also informed that the new fund is planned to begin on Janaury 1 and UBS AG's former metals strategist John Reade would join Paulson & Co. in mid-January.

Today, gold for immediate delivery touched all time high of $1,152.85 an ounce in London, while Gold futures in New York jumped 0.2 per cent to $1,141.20 an ounce.

John Paulson is one of the most successful hedge fund managers and is well known for making a huge amount of money from bets from the collapse of the US sub prime mortgage market.