The creator of the pioneer gold-tracking Exchange-Traded Fund (ETF), GLD, remains optimistic about the commodity even twenty years later. In an interview with CNBC’s "ETF Edge", George Milling-Stanley, the chief gold strategist at State Street, shared his positive outlook for gold for the remainder of the year and into the next.

Milling-Stanley pointed out that demand from central banks and individual investors in emerging markets such as India and China are significant factors propelling the value of this precious metal. He further noted that despite the short-term setback in gold futures and the SPDR Gold Shares ETF (GLD) following the November 5th election, the impressive performance of the asset this year remains undiminished.

The strategist also observed the recent investor trend towards riskier assets which has resulted in significant increases in the stock market and cryptocurrencies. However, he highlighted that gold, and by extension, the GLD ETF, are gradually regaining lost ground.

The introduction of the GLD ETF two decades ago revolutionized the commodity ownership landscape. Since then, investment in gold has transitioned from jewelry into bullion and ETFs as demand for the precious metal has soared. Milling-Stanley described this shift in investor behavior as a "massive transformation" in the commodity investment sector and portfolio management as a whole.

Todd Sohn, ETF and technical strategist at Strategas, echoed Milling-Stanley’s sentiments. According to Sohn, GLD has attracted more investors to gold due to the broader access ETFs provide. "GLD enabled investors to diversify their portfolios beyond equities and fixed-income instruments, regardless of their ultimate goal," Sohn explained.

Since its inception, GLD has risen by 451% and is up 29% in 2024.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as investment advice. Always conduct your own research before making any investment decisions.