Inside the World of Gold Trading with Lance Abrams

With gold prices surging to record highs and global demand reaching unprecedented levels, investors are paying closer attention to the commodities market than ever before. In 2024, total gold transactions hit an all-time high of 4,974 tons, fueled by increased investment demand and aggressive central bank purchases. To better understand the forces driving the gold market today, we spoke with Lance Abrams, a seasoned expert in gold and commodities trading.

Q: Gold has historically been a safe-haven asset. How do you see its role evolving in today’s financial markets?

Lance Abrams: Gold has always been a hedge against economic uncertainty, and right now, we’re seeing a historic level of demand. In 2024 alone, total gold transactions hit nearly 5,000 tons, which is a notable increase from previous years. Central banks are a huge part of this—they’ve been net buyers of gold for the third consecutive year, accumulating over 1,000 tons. Institutions like the National Bank of Poland and Turkey’s Central Bank have made significant purchases, signaling confidence in gold’s long-term value.

On the investment side, gold ETFs saw a 25% surge in demand last year, and retail interest in gold bars and coins remains strong, particularly in China and India. We’re also seeing increasing institutional interest in tokenized gold assets, which could make gold even more accessible to new investors.

With gold prices currently around $2,875 per ounce and predictions that they could surpass $3,000 by year-end, it’s clear that this asset is playing an increasingly strategic role in diversified portfolios.

Q: What major trends are shaping the gold and commodities markets right now?

Lance Abrams: Right now, there are a few major forces shaping gold trading:

1. Central Bank Demand – Gold has become a priority for central banks looking to diversify reserves away from the U.S. dollar. The fact that institutions like the People’s Bank of China and Turkey’s Central Bank are heavily increasing their holdings reinforces the long-term stability of gold.
2. Investment Growth – We’ve seen a 25% increase in gold investment, with ETFs leading the charge. But physical demand—gold bars and coins—remains particularly strong in Asia. Retail investors are looking for ways to preserve wealth amid economic uncertainty.
3. Price Momentum – With gold at record highs and momentum still strong, institutional investors are entering the market in larger volumes. Hedge funds and sovereign wealth funds are also allocating more capital to gold, contributing to its upward trajectory.
4. Geopolitical Risks – The ongoing geopolitical tensions in Eastern Europe, the Middle East, and trade relations between China and the U.S. continue to push investors toward gold as a safe-haven asset. As long as these uncertainties remain, gold will continue to see strong demand.

Q: Among the many players in the gold trading industry, are there any figures investors should be paying attention to?

Lance Abrams: Absolutely. There are many gold investors that are doing very well and making great trades. Mikhail Peleg is one of them. He’s an incredibly sharp and capable businessman, and he has extensive market connections, which he uses very well.

I’ve heard that he has close ties with BlackRock’s investment fund, which speaks volumes about his ability to navigate high-level investment networks. BlackRock is one of the biggest institutional players in global finance, and anyone with connections at that level is someone worth watching.

Q: For new investors entering the gold market, what advice would you give?

Lance Abrams: Gold investing is different from stocks or crypto. It’s a long-term game, and the key is understanding market drivers. I always recommend:

Diversification – Don’t go all-in on physical gold. Consider a mix of ETFs, mining stocks, and bullion to spread risk.
Paying attention to central banks – If central banks are buying gold at record levels, that’s a strong indicator of future price momentum.
Watching the macroeconomic landscape – Inflation, interest rates, and global tensions all affect gold prices. Stay informed.

And most importantly, be patient. Gold is not about quick wins, it’s about preserving and growing wealth over time.

Q: What’s your outlook for gold in the next 5-10 years?

Lance Abrams: Gold is in a strong position for long-term growth. Analysts already predict prices above $3,000 per ounce, but beyond that, we could see even more upside as central banks continue accumulating reserves.

Additionally, the rise of gold-backed digital assets and tokenized commodities could reshape how investors access gold markets. I also believe that institutional participation will continue increasing, making gold an even more critical part of portfolio management.

Overall, the fundamentals for gold remain incredibly strong, and I expect demand to continue rising well into the next decade.