The founder of the first gold-tracking ETF is still bullish on the commodity 20 years later.
“It’s looking good for the rest of this year and for next year,” George Milling-Stanley told CNBC’s “ETF Edge” this week.
State Street’s chief gold strategist highlighted demand from both central banks and individual investors in emerging markets such as India and China as key supporters for the precious metal.
Even postal elections are retreating golden future and the SPDR Gold Shares ETF (GLD) has not affected this year’s record run.
Since the Nov. 5 election, “investors have become excited about risky assets,” Milling-Stanley said. “This is why we’ve seen the stock market rise dramatically, why we’ve seen cryptocurrencies rise dramatically.”
But the precious metal, and in turn, the GLD ETFs are “starting to regain some of the lost ground,” Milling-Stanley said.
GLD chart since the beginning
The launch of the GLD ETF changed the game for commodity ownership when it launched twenty years ago.
Since then, gold investments have shifted from jewelry to precious metals and ETFs as demand for the precious metal has increased. Milling-Stanley describes the increased demand from investors as a “huge change” for the commodity investing landscape – and for portfolio management as a whole.
Todd Sohn, ETF and technical strategist at Strategas, says GLD brought more investors into gold because of the broader access ETFs can provide.
“Whatever your end game is, GLD This allowed you to add something in addition to an equity and a fixed income instrument to your portfolio so that you can get diversification,” said Sohn.
Since its inception GLD has increased by 451%. In 2024 this will have increased by 29%.
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