The surging bitcoin prices may be creating misleading expectations among investors, according to George Milling-Stanley, chief gold strategist at State Street Global Advisors, who oversees the world's largest physically backed gold ETF.
Speaking on CNBC this week, Milling-Stanley cautioned that cryptocurrency investments lack the stability that gold traditionally provides. "Bitcoin, pure and simple, it's a return play, and I think that people have been jumping onto the return plays," he explained.
His comments coincide with the 20th anniversary of State Street's SPDR Gold Shares ETF (GLD), which has seen a remarkable 30% increase in 2024. Gold's trajectory over two decades demonstrates steady growth, rising from $450 per ounce to roughly five times that value today.
The precious metal recently marked its strongest weekly performance since March 2023, with gold futures settling at $2,712.20 - just 3% below the record high achieved last October. Meanwhile, Bitcoin ETFs could surpass gold ETFs by Christmas.
Milling-Stanley raised concerns about cryptocurrency marketing tactics, suggesting they deliberately attempt to associate with gold's established reputation. "This is why they called it mining. There's no mining involved. This is a computer operation, pure and simple," he noted, adding that the terminology aims to "take some of the aura away from gold."
While expressing confidence in gold's future performance, the strategist maintained a measured outlook: "I have no idea what's going to happen over the next 20 years except it's going to be a fun ride. I think that gold is going to do well."
The ongoing debate between traditional precious metals and digital assets continues to shape investor sentiment, as both asset classes experience notable gains in current market conditions.