State Street Advisor Highlights Bitcoin’s Threat to Gold’s Stability

George Milling-Stanley, the chief gold strategist at State Street Global Advisors, highlighted concerns about Bitcoin's surging popularity and its impact on gold investments.

He cautioned that the cryptocurrency’s appeal as a high-yield option might lure investors into risky decisions, detracting from gold’s time-tested stability.

During a CNBC ETF Edge segment, Milling-Stanley described Bitcoin as a straightforward yield-driven asset that lacks the dependability of gold. His comments come as the SPDR Gold Shares ETF, managed by his firm, marks its 20th anniversary, following a year of strong market performance. With gold prices predicted to climb by over 30% through 2024, futures recently neared record highs at $2,712 per ounce. Reflecting on gold’s growth, he noted that prices have multiplied fivefold since the ETF’s inception two decades ago.

In a year where Bitcoin achieved new heights, particularly after the November 5 U.S. elections, the digital asset has increasingly drawn comparisons to gold. Milling-Stanley criticized these parallels, suggesting that the term “mining” used in the crypto world is intentionally misleading to draw attention away from gold. He emphasized that Bitcoin’s “mining” process is purely computational and lacks the tangible aspects of traditional mining.

Despite the rising interest in Bitcoin, Milling-Stanley remains optimistic about gold’s future. He hinted at the metal’s long-term earning potential, noting that if its value has quintupled in the past 20 years, it could see substantial gains over the next two decades. However, he refrained from making precise predictions, reiterating gold’s role as a secure investment.

Milling-Stanley urged those prioritizing safety in their portfolios to carefully evaluate their cryptocurrency investments. While acknowledging the unpredictability of markets, he expressed confidence in gold’s enduring appeal, calling its trajectory over the next 20 years an exciting prospect.