The Bitcoin price surge is creating a false sense of security among investors, according to the strategist behind the world's largest gold ETF.
George Milling-Stanley, Chief Gold Strategist at State Street Global Advisors, warned that investments in cryptocurrencies cannot provide the same sustainable stability as gold.
"Bitcoin, after all, is just a speculative investment vehicle, and I think a lot of people are rushing into these kinds of investment vehicles."
His comments came as the SPDR Gold Shares ETF (GLD), the world's largest physical gold ETF, celebrated its 20th anniversary, having grown more than 30% in 2024.
"20 years ago, gold was only around $450 an ounce," Milling-Stanley said. "Now, the price of gold has quintupled. At this rate of growth, gold could reach over $100,000 in the next 20 years."
Gold has just recorded its most impressive growth since March 2023. Gold futures closed at $2,712 on Friday, the highest level since November 5. Gold prices are currently only about 3% below the record high reached on October 30.
Bitcoin, which has surged strongly since the US presidential election on November 5, is also having a banner year. On Friday, Bitcoin reached a new All-Time-High of $99,645 before retreating to current levels.
Milling-Stanley emphasized that investors who value the safety of gold should be cautious about investing in Bitcoin. He believes the cryptocurrency world is trying to manipulate investor emotions.
"That's why they, the Bitcoin supporters, call it 'mining'. But there's no mining going on. It's just a computer activity, plain and simple. But they call it mining to try to make it sound like gold - perhaps to try to steal some of gold's luster."
However, he also acknowledged that no one can accurately predict the future price of gold.
"I can't say what will happen in the next 20 years, but I believe this journey will be very interesting. Gold will continue to be a viable investment option."
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Annie
According to CNBC
