Investors looking to weather volatile markets may want to choose physical gold over gold stocks.
So says George Milling Stanley, one of the world’s leading gold experts and chief gold strategist at State Street Global Advisors.
“One of the reasons I own gold bars is because they offer some protection from potential weakness in the stock market,” Milling Stanley said on CNBC’s “ETF Edge” this week. I believe that they will protect me,” he said. “When the stock market falls, gold mining stocks Remember, these are stocks and tend to fall depending on the general level of the stock market. So they don’t offer me that extra level of protection. ”
Milling Stanley’s firm operates two exchange-traded funds that track the performance of gold’s spot price. SPDR Gold Stock ETF (GLD) and SPDR Gold Mini Shares Trust (GLDM).
Milling Stanley says they are differentiated by their total expense ratios (0.40% for GLD and 0.10% for GLDM), and this key distinction also differentiates the types of investors they attract.
“If you’re someone who wants to trade…or you want to be a tactical player, which means you need to be able to move very quickly, the liquidity in GLD now after 20 years means it’s very, very stable. “This means that trading costs are low compared to other gold ETFs,” he said. “If you have $1 million and you want to invest that $1 million in gold and keep it there, GLDM makes more sense because of its lower expense ratio.”
As of Thursday’s close, both GLD and GLDM were up 15% year-to-date.
Gold bullion, Bitcoin, boomer currency
concept of Money According to Milling Stanley, “fuddy duddy” investing is no longer true. State Street’s 2023 Pension ETF Impact Study found that millennials allocate a larger portion of their portfolios to gold than older generations.
The metal’s growing popularity among young investors comes as Bitcoin continues to attract assets from both Millennials and Gen Z. A Policygenius study released this week found that Millennials are more likely to own Bitcoin than any other generation, and Gen Z is more likely than any other generation to own Bitcoin. stocks, bonds, real estate, etc.
But milling Stanley Bitcoin They are competing for assets across the board.
“Bitcoin could be a competitor for people who take tactical positions in gold and just wait for the price to go up and sell.I think Bitcoin could bring a competitive edge there. I think there is,” he said. “But in terms of long-term strategic allocation, I don’t see Bitcoin really competing. That’s where I think gold really shines.”
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