The founder of the first gold-tracking ETF is still bullish on the commodity two decades later.
“Things are looking good for the rest of this year and next year,” George Milling Stanley told CNBC’s “ETF Edge” this week.
State Street’s chief gold strategist highlighted demand from central banks and individual investors in emerging markets, such as India and China, as key tailwinds for the precious metal.
Even the post-election pull-back Gold futures And SPDR Gold Shares ETF (GLD) This year’s record has not been blemished.
Since the Nov. 5 election, “investors have gone gung-ho on risk assets,” Milling Stanley said. “That’s why we’ve seen the stock market go up dramatically, why we’ve seen cryptocurrencies go up dramatically.”
But the precious metal, and consequently, GLD ETFs, “are starting to make up some of the lost ground,” Milling-Stanley said.
GLD chart from scratch
The beginning of GLD ETFs changed the game for owning commodities when they started 20 years ago.
Since then, investing in gold has moved away from jewelry and into bullion and ETFs as demand for the precious metal has grown. Milling-Stanley describes the increased demand from investors as a “major change” in the commodity investment landscape and portfolio management as a whole.
Todd Sohn, technical strategist at ETF and Strategas, says. GLD The wider reach of ETFs brought more investors into gold.
“It doesn’t matter what your end game is, GLD Allowing you to add something other than equity and a fixed income instrument to your portfolio, so you can get diversification,” Sohn said.
Since its inception, GLD 451 percent higher. It is 29 percent higher in 2024.
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