Naguib Sawiris, the chairman of Orascom Telecom Media and Technology Holding S.A.E, said he sees gold hit $1,800 an ounce while the “overvalued” stock market hits the skids
Naguib Sawiris, a multi-billionaire from Egypt, has sounded the doom for the stock market. Expressing lack of confidence in the share market in near future, he said he has diverted half his funds to gold.
In an interview with Bloomberg, Sawiris, the chairman of Orascom Telecom Media and Technology Holding S.A.E, said he sees gold hit $1,800 an ounce (=28.34g) while the “overvalued” stock market hits the skids.
Counting the reasons behind his gloomy outlook, he said, “In the end you have China and they will not stop consuming. And people also tend to go to gold during crises and we are full of crises right now.”
“Look at the Middle East and the rest of the world and Mr Trump doesn’t help.”
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Sawiris, who is just behind his brother in country’s rich list with $5.7 billion as net worth, has substantial investments in telecom and energy sector. He has made fortunes making investments in less popular markets such as Pakistan, Iraq, Bangladesh and even North Korea.
The ongoing peace talks between North Korean Supreme Leader Kim Jong-un and other world leaders could help his investments in the hermit nation. Sawiris founded the first telecom provider in North Korea but revenue generated there is hard to exchange in the world currency market.
“I am taking all the hits, I am being paid in a currency that doesn’t get exchanged very easily, I have put a lot of money and built a hotel and did a lot of good stuff there,” he said.
He suggested Trump not to bully the North Korean leader and promise prosperity in exchange for concessions on nuclear. “I know these North Korean people. They are very proud, they will not yield under threat and bullying. You just smile and talk and sit down and they will come through,” he said.