Egyptian billionaire Naguib Sawiris said gold is a good investment when the world is worried about inflation. This is why he advises investors to allocate at least 30% of portfolio in gold.
"You need a portion of your portfolio to be invested in gold," Sawiris said. "I say 20% to 30%. I used to be at 50%."
Sawiris explained that gold should win against inflation, but warned that it is a delicate balance between rising prices and domestic rates.
When asked about the stock market, Sawiris answered that it has been in a high range for a very long time, so it is not a surprise if there will be a collapse. He added that there are a lot of uncertainties such as political instabilities in the world.
Sawiris set up a $ 1.4 billion fund last month to keep his investment in gold mining and provide capital for new opportunities in the sector. His comments follow the sudden gold plunge early Monday morning, triggered by Friday's better-than-expected US employment report and a lack of liquidity in the area.