The Bitcoin According to the strategist behind the so-called granddaddy of gold exchange-traded funds, the rally is creating a false sense of security among investors.
George Milling-Stanley of State Street Global Advisors warns that cryptocurrencies do not offer the stability of gold.
“Bitcoin is a return play, pure and simple, and I think people have jumped on the return plays,” the firm’s chief gold strategist said on CNBC’s “ETF Edge” this week.
Milling-Stanley's comments came as those of his company SPDR Gold Shares ETF (GLD) celebrated its 20th anniversary this week. It is the world's largest physically backed gold ETF, rising more than 30% in 2024.
“Gold was $450 an ounce [20 years ago]Milling-Stanley said. “The price now is five times what it was back then. If you look at five times the price, gold should be somewhere over $100,000 in twenty years.”
Gold just had its best weekly performance since March 2023. Gold futures closed Friday at $2,712.20, its highest since November 5. Gold prices are now just 3% below the record high set on October 30th.
Bitcoinwhich has risen sharply since the election on November 5th, is also experiencing a record year. It hit an all-time high on Friday.
Milling-Stanley believes investors who value gold's security properties should reconsider entering Bitcoin. He suggests that the crypto world is trying to manipulate them.
“That’s why they are [bitcoin promoters] called it mining. There is no mining. “This is a computer operation, pure and simple,” he said. “But they called it mining because they wanted to seem like gold – maybe take some of the gold’s aura away.”
Still, he admits that it is unclear how high the yellow metal can actually rise.
“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.”