The Ulley Sailing Club member claimed the laser class title and realised his life-long Olympic dream on Tuesday.
Solid performances in the preliminary rounds meant the Sheffield-born 30-year-old needed only to avoid coming last in the 10-man medal showdown to claim glory.
And after the heartbreak of narrowly missing out on the podium in Athens, he made sure Sweden's Rasmus Myrgren – the only other sailor with a chance of taking gold – had no chance from the start.
Goodison covered the Swede from the off, leaving the two boats trailing the rest of the fleet. His ninth place ensured overall victory, while Myrgren was sent home empty-handed.
"It was soul-destroying when he finished fourth last time," said Paul's proud dad Roy.
"But it was then that he made a mental decision to work even harder next time."
"He was ruthless, and he had to be."
"I told him afterwards that he could imagine how the Swede would be feeling, and he said 'I know, I went straight over to him afterwards and apologised.'"
The medal was Great Britain's 13th gold of the Games – contributing to Team GB's best medal-haul in a century.
Slovenia's Vasilij Zbogar finished in overall second in the laser class, while Diego Romero came third to take the bronze for Italy.
At a press conference following the deciding race, ardent Sheffield United fan Paul defended his choice of tactics.
"It might not have been the best way to do it," he told the world's media.
"But with the conditions being so tricky, it was the best way of making sure of gold."
"I apologised to Rasmus but I think he was still a bit stressed and upset about the race."
"He was distraught and I can understand how he feels."
"I feel really sorry for him. I wish it hadn't happened to him but at the end of the day there can only be one winner."
The newly-crowned champion's brother Matthew, 27, also sailed competitively until suffering a shoulder injury.
He said Paul was left with only one option going into the final race owing to the weather conditions in China.
"He was in a very good position. Even if he hadn't sailed, he would have got silver," he said.
"But with the light winds this was the only way for him to guarantee gold. Because of the conditions, he just couldn't take the chance."
He added: "It's fantastic to see him achieve his lifetime goal after working really hard to get there."
Dad Roy said it was highly likely that Paul will defend his Olympic title in four years' time.
And Paul may have an added advantage as he now lives in Weymouth – where the 2012 contest will be held.