the Bitcoin The rally is creating a false sense of security among investors, according to the strategist behind the so-called “grandfather of gold ETFs.”
Cryptocurrency trading does not provide the stability of gold, warns George Milling-Stanley of State Street Global Advisors.
“Bitcoin, plain and simple, is a comeback play, and I think people have jumped into comeback plays,” the firm's chief gold strategist said on CNBC's “ETF Edge” this week.
Milling Stanley's comments were similar to his company's comments SPDR Gold Dividend Fund (GLD) It celebrated its 20th anniversary this week. It is the largest physically backed gold ETF in the world, and will rise more than 30% in 2024.
“Gold was $450 an ounce (20 years ago),” Milling-Stanley said. “It's now five times what the price was then. If you look at five times the price, the price of gold should be over $100,000 within twenty years.”
gold Gold futures had their best weekly performance since March 2023. Gold futures settled at $2,712.20 on Friday, the highest settlement level since November 5. Gold prices are now just 3% below the record high reached on October 30.
BitcoinThe country, which has been on the rise since the November 5 elections, has also had a banner year. It hit an all-time high on Friday.
Milling-Stanley believes investors who value gold's safety qualities should reconsider staking bitcoin. He points out that the cryptocurrency world is trying to manipulate them.
“That's why they (Bitcoin promoters) call it mining. There is no mining. This is a computer process, plain and simple,” he said. “But they called it mining because they wanted to look like gold — maybe take some of the aura away from gold.”
However, he admits that it is unclear how far the yellow metal can actually go.
“I have no idea what's going to happen in the next 20 years except that it's going to be a fun ride,” Milling-Stanley said. “I think gold will do well.”
