Bitcoin’s rally is creating a false sense of security among investors, according to the strategists behind the so-called granddaddy of gold exchange-traded funds.
George Milling Stanley of State Street Global Advisors warns that crypto plays do not offer the stability of gold.
“Bitcoin, pure and simple, this is a move back and I think people are jumping on the move back,” the firm’s chief gold strategist told CNBC’s “ETF Edge” this week.
Milling Stanley’s comments came as his firm’s SPDR Gold Shares ETF (GLD) celebrated its 20th anniversary this week. It is the world’s largest physically backed gold ETF and is poised to rise more than 30% in 2024.
“Gold was $450 an ounce. [20 years ago]”It’s now five times what it cost then,” Milling Stanley said. At 5 times the price, gold should be worth over $100,000 in 20 years. ”
Gold’s weekly performance just hit its best since March 2023. Gold futures prices on Friday settled at $2,712.20, the highest since November 5th. Gold prices are currently just 3% below the all-time high reached on October 30th.
Bitcoin, which has soared since the Nov. 5 election, is also having a great year. It hit an all-time high on Friday.
Milling-Stanley believes that investors who value the safety of gold should reconsider adding to Bitcoin. He suggests that the crypto world is trying to manipulate them.
“This is what they [bitcoin promoters] We called it mining. No mining involved. It’s a pure and simple computer operation,” he says, “but they called it mining because they wanted it to look like gold. Maybe they took some of the aura away from gold. ” he said.
But he admits it’s unclear how high this yellow metal can actually rise.
“I have no idea what the next 20 years will bring, but I’m sure it’s going to be a fun journey,” Milling-Stanley said. “I think gold will do well.”
