Precious metal investors are being distracted by the allure of the crypto rally, according to State Street.

The strategist behind the granddaddy of gold exchange-traded funds claims that the rally is giving investors a false sense of security.

Gold offers more stability than cryptocurrency plays, according to George Milling-Stanley of State Street Global Advisors.

The firm's chief gold strategist stated on CNBC's "ETF Edge" that Bitcoin is a replay and people have been jumping onto replay opportunities.

This week, Milling-Stanley's comments were made during his firm's 20-year anniversary celebration. The world's largest physically backed gold ETF, Milling-Stanley's firm has seen an increase of over 30% in 2024.

"According to Milling-Stanley, gold was worth $450 an ounce 20 years ago. Now, it's five times more valuable. If we consider a five-fold increase in price, gold should be worth over $100,000 in 20 years."

Gold futures reached their best weekly performance since March 2023, settling at $2,712.20 on Friday. Gold prices are now only 3% below the record high hit on Oct. 30.

Since the Nov. 5 election, the stock market has surged and is experiencing a banner year, with an all-time high recorded on Friday.

Stanley-Milling suggests that investors who value gold's safety should reconsider investing in bitcoin, as the crypto world may be attempting to manipulate them.

"Bitcoin promoters called it mining to make it seem like gold and take away some of its aura, but there's no actual mining involved. It's just a computer operation."

He admits that it is uncertain how high the yellow metal can reach.

""I am uncertain about what will transpire in the next 20 years, but I believe gold will perform well," Milling-Stanley stated."