"We're Full Of Crises Right Now" - Egyptian Billionaire Piles Billions Into Gold

Meet Egyptian billionaire Naguib Sawiris, older brother of Egypt's richest man...

Like many other big investors, Sawiris sees warning signs ahead and has taken action - putting half of his $5.7 billion net worth into gold.

Bloomberg reports that he said in an interview Monday that he believes gold prices will rally further, reaching $1,800 per ounce from just above $1,300 now, while “overvalued” stock markets crash.

“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,” Sawiris said at his office in Cairo overlooking the Nile.

“Look at the Middle East and the rest of the world and Mr. Trump doesn’t help.”

However, as Bloomberg notes, Sawiris also has a major investment that President Trump could very much help him with...

If a North Korean peace deal can be reached, the Egyptian’s investments there may finally pay off. After 10 years of waiting to repatriate all his profits easily and control his mobile-phone company, Egypt’s second-richest man says an accord would let him reap some of his returns.

“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,” said Sawiris, who founded North Korea’s first telecom operator, Koryolink. The North Korean unit’s costs and revenues aren’t currently recognized on the financial statements of Sawiris’ Orascom Telecom Media & Technology Holding SAE.

Sawiris over the years has been pressured by “every single Western government in the world” for his presence in the country hit by international sanctions for its nuclear threats, he said, but he considered himself a “goodwill investor.”

His advice for governments and to Trump ahead of his expected meeting with North Korean Leader Kim Jong Un: Don’t bully him, 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.

Finally, and notably,  Bloomberg reports that  Sawiris is giving investment priority to his homeland after an International Monetary Fund-backed reform program that began in 2016, saying that his view of Saudi Arabia was negatively impacted by a corruption crackdown that led to the arrest of high-profile princes and billionaires in November. Authorities need to ensure there is rule of law and order and transparency, he said.

Comments

ldd BigCumulusClouds Tue, 05/01/2018 - 23:22 Permalink

there was a guy who died a few years ago and his family did not know he had a gold stash. workers doing reno work on the house discovered it under a built in closet and stole some of the kg gold bars. they were arrested and now the family - wife and kids are millions richer. i would imagine there are many stashes that get lost due to the owner burying and dying or forgetting where he buried it.

In reply to by BigCumulusClouds

Manipuflation Consuelo Wed, 05/02/2018 - 00:41 Permalink

Gold at $250 would be awesome.  Can you imagine how much MOAR I could stack?!!!  Or right, reality.  The bad news for douchebags is that the physical market is already thin where prices are now.  If you never actively participate in the physical market and just go to Kitco for your news then you have no clue what is going on.   If gold ever goes below $1000 no one will sell including me.

In reply to by Consuelo

Give Me Some Truth IridiumRebel Tue, 05/01/2018 - 20:55 Permalink

Where will he get $2.8 billion in physical gold? I assume he is requesting to take possession of physical bars. Surely he is too smart to buy paper gold.

You call up one of these gold exchanges and say, “I want $2.8 billion in gold bars. i’ll Pay in cash. I’m sending an armored truck tomorrow.” Won’t they laugh at you? Or maybe shit a brick.

In reply to by IridiumRebel

Give Me Some Truth nmewn Tue, 05/01/2018 - 21:04 Permalink

The guy makes or announces the biggest purchase by an individual in years and the price of gold ... plummets today.

Of course this would happen. Also war b/w Israel and Iran, rising inflation, $488 billion borrowed in the first quarter, trade wars, war wars, massive spending, etc.

Again, what can make the price of gold go up? I assume this guy in Egypt hasn’t figured out how the game works. Or maybe he is like me and is simply betting against the arrogant central planners.

In reply to by nmewn

snblitz GoingBig Wed, 05/02/2018 - 00:48 Permalink

Why is it impossible to get people to understand simple things that are right in front of them:

Starting in 1965 with $24,000 what my Mom would have in 2018:

  • housing $24,000 -> $1,500,000
  • gold $24,000 ($35) -> $900,000 ($1325)
  • S&P 500 $24,000 ($86) -> $735,000 ($2636)
  • mattress stuffing $24,000 -> $24,000
  • T-bills $24,000 -> $117,000 (3%)
  • bars of soap $24,000 ($0.16) -> $225,000 ($1.50)

Can you find the one that is a really really bad idea?

Can you figure out why?

The problem is that your measuring stick (dollars) are losing value and you are foolish enough to think you are "making money" with the other investments.

 

 

In reply to by GoingBig

East Indian Tue, 05/01/2018 - 20:38 Permalink

Has he taken possession of the bars? Has he stored them under his bed? Or has he bought a bunch of papers that promise you more bundles of colourful papers when the SHTF? 

 

There is a difference between watching a porn movie and acting it. 

GoingBig Tue, 05/01/2018 - 20:47 Permalink

How many ZH articles are going to tout gold as the savior? Geez, I stopped counting in 2013 when everyone was "backing up the truck". Remember those days everyone? How many years and retirement dollars have you lost because you foolishly invested in gold and silver? Hmmm? Keep waiting.......

Alexander De Large Tue, 05/01/2018 - 20:50 Permalink

ZH sponsors saw all those "Gold slides into a tumble to stumble then collapse and crash" articles and threatened to stop payment on those checks.

"Er, um, some Egyptian guy's brother just bought a bunch of gold because things are fucked up, he says.  Film at 11!"

Praise God.

Quinvarius Tue, 05/01/2018 - 20:53 Permalink

Whether people buy gold or not, the government/bankers are motivated to drop the price in a crisis.  I used to think it was the government leading it.  But now I am pretty sure it is all to protect private banking derivatives, and the government/fed is just helping.  Despite what the PR says, a high gold price means absolutely nothing to the dollar or government.  It only has meaning to people with active financial interests in it.

Consuelo Quinvarius Tue, 05/01/2018 - 21:14 Permalink

This comes to my mind:

 

- How important is it for the U.S. government to maintain the perception of credibility for its debt instruments held worldwide?

- What is the polar opposite (in terms of a global/universally recognized) store of value?

- Gold may not be 'popular' amongst the U.S. banking establishment or government, but it is quite popular amongst major trading and likewise, militarily equipped nations.

- The reason gold doesn't mean much at this moment in time, is because it has not yet been weaponized - meaning, the aforementioned trading nations have not had to resort to its use - despite geopolitical bullying tactics employed by U.S. foreign policy, but that doesn't mean that it will not be employed at some future date - which could be precipitated rapidly should trade disagreements break down further, or said geopolitical bullying ratchet up, all the same.

In reply to by Quinvarius

Quinvarius Scuba Steve Tue, 05/01/2018 - 21:53 Permalink

It is accurate.  Gold dumped through the floor in 2009.  Then it went up.  Then it went down.  We have had numerous wars and crises.  It has never remotely achieved forecasted value.  No government gave a crap no matter what it did.  Only bankers and traders cared.  And there is absolutely zero connection between gold and the US Dollar.  It simply doesn't matter to any government.  Look around.  They all sold it.  That ought to inform you.  We don't use gold for money, so some dusty nonsense from the 70's doesn't matter.

Do you realize the kind of devastation that would have to happen for gold to ever be money again?  It will go up when bankers feel like trading it up for personal gain.  That is about it.

In reply to by Scuba Steve

Surrealist Tue, 05/01/2018 - 20:54 Permalink

He's wrong as the simple fact of the matter is there cannot be another war or economic slowdown until (at least) the year 2100.

So everyone take the day off reading these negative comments and go out and spend! Spend! Spend! Borrow! Borrow! Borrow! There's only great times ahead!