As gold approaches $1,800 an ounce commentators are still very bullish about the prospects. And so am I. There is increasing confidence that the price still has some way to go before it runs out of steam. Of course, the problem is trying to determine when that might be.

From what I’ve read we are still some three to five years away from a peak. At the right time those holding precious metals will look to sell and move the money into the next asset class that is showing potential for growth.

Whilst I mentioned gold at the top of this post the same also applies to silver. In fact, some believe that this has even greater potential as its value in relation to gold is unbalanced. Historically silver has traded at about one twelfth the price of gold. Currently that ratio is nearer one thirtieth. Given that all trends regress towards the norm the proportionate rise in the value of silver could dwarf even that of gold.

Of course, much of this is speculation and only time will tell if it plays out. I’m making plans to profit if it does.

I buy both gold and silver from BullionVault. This allows me to buy real metal and have it stored a location of my choice. I started doing this several years ago by putting away some money each month. You don’t have to have a lot of money to buy either metal and if, like me, you save a regular amount each month it soon adds up.

With my crystal ball not being that clear at the moment I don’t put all my money into gold or silver. That is never a good idea as powers greater than mine have the ability to manipulate prices to depress the true value. Eventually, this will unravel and the true price of gold and silver will re-assert itself.

If you haven’t already started to build up gold and silver deposits then I would urge you to seriously consider it. I use BullionVault because I can keep a close track of my purchases and their business model is highly effective. They do charge a fee for managing the process of buying and selling but this is minimal compared to the benefits of holding some of the hard stuff…gold or silver.

Related posts:

1. Take ownership of Precious Metals…
2. Gold at $1100 an ounce is still cheap…
3. BullionVault steady as a rock…