The bitcoin The rally is generating a false sense of security among investors, according to the strategist behind the so-called granddaddy of gold exchange-traded funds.
George Milling-Stanley of State Street Global Advisors warns that cryptocurrency plays don’t offer the stability of gold.
“Bitcoin, pure and simple, is a return play, and I think people have jumped on the return plays,” the company’s chief gold strategist said this week on CNBC’s “ETF Edge.”
Milling-Stanley’s comments came as those of his firm SPDR Gold Shares ETF (GLD) celebrated its 20th anniversary this week. It is the world’s largest physically backed gold ETF, and is set to rise more than 30% in 2024.
‘Gold cost $450 an ounce [20 years ago]Milling-Stanley said. ‘The price now is five times higher than it was then. If you look at a fivefold price, in 20 years gold should be somewhere above $100,000.”
Gold just achieved its best weekly performance since March 2023. Gold futures settled at $2,712.20 on Friday, the highest since November 5. The gold price is now only 3% below the record high of October 30.
Bitcoinwhich has increased dramatically since the November 5 elections, is also having a banner year. A record high was reached on Friday.
Milling-Stanley believes that investors who cherish the security qualities of gold should reconsider their move to bitcoin. He suggests that the crypto world is trying to manipulate them.
“This is why she [bitcoin promoters] called it mining. There is no mining involved. This is a computer operation, pure and simple,” he said. “But they called it mining because they wanted to look like gold — maybe take away some of the aura of the gold.”
Still, he acknowledges that it’s unclear how high the yellow metal can actually go.
“I have no idea what’s going to happen in the next 20 years other than it’s going to be a fun ride,” Milling-Stanley said. “I think gold will do well.”