An Egyptian billionaire known as Naguib Sawiris has stated he remains a bull on gold and has no intentions to invest in cryptos like bitcoin because it would be a very risky investment.
Sawiris claims Gold is Still a Safe-Haven Asset
In his statement released by The National News, Sawiris reveals he thinks it is wrong for investors to make comparisons between bitcoin and gold. Sawiris, who is also the exec chair of Cairo-based Orascom Investment Holding, says gold is still the safer asset in today’s trading environment.
“I am still very bullish on gold and it’s a safe haven. Now people are comparing Bitcoin (BTC) with gold; it is an incorrect comparison,” said the billionaire.
As an indicator of his endorsement of gold ahead of crypto, one of the businesses that Sawiris backs, AKH Gold, is said to have signed an agreement to explore nine blocks in the gold-rich eastern desert of Egypt’s. Likewise, La Mancha Holding — the business which the billionaire chairs — is said to have created an investment fund worth $1.4 billion this year to seek investments in gold mining.
The Achilles’ Heel of Crypto
However, with respect to BTC and other cryptos, Sawiris, who has a net worth of $3.2 billion in assets, says the volatility of the assets makes them extremely risky investments. As a result, Sawiris cautioned people investing in cryptos that they should expect to lose their money. He said:
“When the doomsday comes and it collapses, the last investors in the row will lose.”
Surprisingly, Sawiris is also quoted cautioning investors of an impending asset valuation bubble that is building in the wake of the speedy economic liquidity and rebound after government measures have slowed the world’s economy down. Some shares or stocks are overvalued and there will be a correction sooner or later.
He then recommends investors to be careful of how they compose their overall portfolios and which stocks they choose in equity markets. He added that traders should “always have a position in cash because you do not know what can happen the market of tomorrow.”
Author: Blake Ambrose