He believes due to its sensitivity to significant losses, bitcoin is no substitute for the real thing.
“Volatility does not back up any claims for crypto to be a long-term strategic asset as a competitor to gold,” the firm’s chief gold strategist, Milling Stanley, told CNBC’s “ETF Edge”.
SPDR Gold Shares, the world’s largest physically backed gold ETF, is managed by Milling-Stanley’s firm. According to the company’s website, it has a total asset value of more than $57 billion, in comparison to the previous week.
However, as of the previous week’s market closing, the ETF had surged by 7% year to date.
Furthermore, Milling-Stanley feels that gold’s 6,000-year history as a monetary asset provides an important sample for understanding the benefits of investing in gold.
“Gold is a hedge against inflation. Gold is a hedge against potential weakness in the equity market. Gold’s a hedge against potential weakness in the dollar,” Milling-Stanley noted.
“To me, historically, the promise of gold for investors has… over time [helped] to enhance the returns of a properly balanced portfolio,” he added.
Although, in the current year, the precious metal (gold) is having trouble staying above the $2,000 an ounce mark. However, Milling-Stanley feels that the economic backdrop is favourable for gold, recession or not.
“It’s pretty clear that we’re liable to be in a period of slow growth. … Historically, gold has always done well during periods of slower growth,” Milling-Stanley said in a statement.
Previously, Milling-Stanley also predicted the relaxation of COVID-19 restrictions in China, which would spark more demand for gold. Moreover, it’s known as the world’s second-largest consumer of gold jewellery behind India, according to the World Gold Council.
“It’s not just China and India. It’s Vietnam, it’s Indonesia, it’s Thailand and Korea. It’s a whole raft of Asian countries that are really the main drivers of gold jewellery demand,” Milling-Stanley said.
Gold settled at $1,960.47 an ounce on Friday. The commodity is up more than 7% so far for the current year.
- Published By Team Genuine Reporter