Physical gold offers more protection than mining stocks, says State Street’s George Milling-Stanley

Gold, a traditional safe haven asset, may offer more protection against market downturns than gold stocks, advises George Milling-Stanley of State Street Global Advisors.

Unlike gold stocks, which tend to decline with the equity market, physical gold acts as a buffer when stocks fall.

Milling-Stanley recommends holding physical gold bars for potential protection.

His firm offers two gold ETFs: SPDR Gold Shares ETF (GLD) and SPDR Gold MiniShares Trust (GLDM).

GLD has higher liquidity, making it suitable for active trading.

GLDM has a lower expense ratio, ideal for long-term, passive investors.

Both GLD and GLDM have performed well this year, reflecting the growing popularity of gold among millennials.

However, Milling-Stanley does not view bitcoin as a direct competitor to gold for long-term strategic allocation.

He believes bitcoin may appeal to tactical investors looking for short-term price gains but not as a long-term hedge against market volatility.

In summary, physical gold is considered a more effective diversification strategy than gold stocks.

It offers protection against equity market weakness, which gold stocks do not.

ETFs like GLD and GLDM provide investors with convenient access to this valuable asset, offering varying liquidity and cost options to meet diverse needs.

Millennials are increasingly embracing gold as a hedge against volatility, despite the popularity of bitcoin among their generation.