The recent surge in Bitcoin value has led to a misguided sense of security among investors, warns George Milling-Stanley, a strategist at State Street Global Advisors, often referred to as the architect of the first gold exchange-traded fund (ETF).
Milling-Stanley argues that cryptocurrency investments lack the stability provided by gold. “Bitcoin is a pure return play. People are getting attracted to it due to its returns,” said the chief gold strategist of the firm during an appearance on CNBC’s “ETF Edge.”
The strategist’s observations coincide with the 20th anniversary celebration of his firm’s SPDR Gold Shares ETF (GLD), the world’s largest physically backed gold ETF, which has witnessed an increase of over 30% in 2024.
“Gold’s worth was $450 an ounce two decades ago, and now it’s five times that value. If we consider this five-fold increase, then gold should be valued at over $100,000 in the next twenty years,” Milling-Stanley predicted.
Gold has recently shown strong performance, witnessing its best weekly performance since March 2023. Gold futures closed at a high of $2,712.20 on Friday, the highest since November 5, and are currently just 3% below the record high hit at the end of October.
Bitcoin, on the other hand, has experienced a surge since the November 5 election and has had an exceptional year, reaching a record high on Friday.
However, Milling-Stanley advises investors who value the security of gold to reconsider investing heavily in Bitcoin. He believes that the crypto world is attempting to mislead them.
“The terminology of ‘mining’ in Bitcoin is misleading. It’s a computer operation, not actual mining. The term was coined to make it seem similar to gold, possibly to attract some of gold’s allure,” he explained.
While the strategist acknowledges the uncertainty surrounding how high gold can climb, he remains optimistic about its future.
“I can’t predict what the next 20 years will bring, but it’s going to be an exciting journey. I believe that gold will perform well,” said Milling-Stanley.
