The recent surge in Bitcoin prices is creating a misleading sense of security among investors, cautions George Milling-Stanley, the chief gold strategist at State Street Global Advisors and a key figure behind one of the largest gold exchange-traded funds (ETFs).
In an appearance on CNBC’s “ETF Edge,” Milling-Stanley emphasized that cryptocurrencies lack the stability traditionally associated with gold. “Bitcoin is fundamentally a return play, and I believe many investors are gravitating towards these types of investments,” he stated.
His remarks coincided with the 20th anniversary of the SPDR Gold Shares ETF (GLD), which is the largest physically backed gold ETF in the world and has seen a remarkable increase of over 30% in 2024 alone.
Reflecting on gold’s historical performance, Milling-Stanley noted, “Twenty years ago, gold was priced at $450 an ounce. Today, it has quintupled in value. If we extrapolate this growth, gold could potentially exceed $100,000 per ounce in the next two decades.”
Gold recently achieved its best weekly performance since March 2023, with futures closing at $2,712.20 on Friday—the highest settlement since November 5. Current gold prices are now only 3% shy of the record high reached on October 30.
Meanwhile, Bitcoin is also enjoying a stellar year, having reached an all-time high following the November 5 elections.
Milling-Stanley advises investors who value gold’s safe-haven qualities to think twice before diving into Bitcoin. He suggests that the cryptocurrency sector may be attempting to mislead investors. “They refer to it as ‘mining,’ but there’s no actual mining involved—it’s simply a computer operation,” he explained. “The term ‘mining’ is used to evoke an image similar to gold, perhaps to diminish gold’s unique appeal.”
Despite his critiques of Bitcoin, Milling-Stanley admits that the future trajectory of gold remains uncertain. “I can’t predict what will happen over the next 20 years, but I expect it will be an interesting journey. I believe gold will continue to perform well,” he concluded.
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