New York (HedgeCo.net) – In a Sunday Times article this weekend, Bryan Collings, who manages the Investment Fund for Ingnis International Hexam Global Emerging Markets, predicted an increase in the price of precious metals of 25% over the next 18 months. He forecasts that the price of gold will rise 20% to $1,200 an ounce by 2010. Remarkably, other commentators are predicting an even more significant rise to $1,500 an ounce within the next two years.

Gold was pushed to its highest level in the last six months because investors are keen to buy gold as a hedge against inflation. Gold has always been seen as a good investment in times of economic uncertainty. With continued concerns about inflation, the gold markets show no signs of cooling unlike the currency markets which continue to fluctuate.

Jason Cozens, Managing Director of Au, the online gold exchange said, “This is consistent with our predictions for the price of gold as investors are undoubtedly keen to buy gold at the moment. We are seeing an increase in enquiries from all kinds of investors. Media reports, like the Sunday Times article, are encouraging investors and we believe that it is prudent for individuals to invest up to 40% of their total portfolio in gold”.

Similarly, the price of other precious metals has soared since the beginning of the year. Silver has also strengthened with figures from the S&P GSCI Silver index showing a gain of 46.4% since the start of 2009. Copper has risen 102% since the beginning of the year and experts are predicting that with a shortage in supply and growing demand the price will continue to go up. Uranium prices are also expected to rise with an increase in demand for the metal, which is used in the production of nuclear energy.

Editing by Alex Akesson