Twenty years later, the founder of the world's first gold ETF still remains optimistic about this precious metal.
"The outlook for the remainder of this year and next year looks good," George Milling-Stanley said this week on CNBC's 'ETF Edge'.
The chief gold strategist at State Street emphasized that the demand from central banks and individual investors in emerging markets like India and China is a major factor driving up gold prices.
Even after the election, the pullback in gold futures and SPDR Gold Shares ETF (GLD) did not affect their record gains this year.
Milling-Stanley stated that since the election on November 5, "investor interest in risk assets has surged. That’s why we see significant rises in both the stock market and cryptocurrencies," while gold and gold ETFs are "beginning to recover lost ground."
Twenty years ago, the launch of GLD changed the rules of the game for commodity ownership and became the largest gold ETF in the world.
Since then, with soaring demand for gold, investments in gold have shifted from jewelry to bars and ETFs. Milling-Stanley described the increase in investor demand as a "huge change" in the commodity investment landscape and overall portfolio management.
Todd Sohn, an ETF and technical strategist at investment research firm Strategas, stated that GLD has attracted more investors into the gold market because ETFs can provide broader access.
"Whatever your ultimate goal is, GLD allows you to add something beyond stocks and fixed income instruments to your portfolio, enabling you to achieve diversification," said Sohn.
Since its inception, GLD has risen by 451%, with a 29% increase in 2024.
Article forwarded from: Jin Shi Data