The metals bubble

After a virtually uninterrupted two-year bull run, metal prices have dropped sharply from their highs last May, only to bounce back a little last month How have investors reacted? Jayne Jung reports

Metals prices ave been on a sharp upward trajectory over the past few years, with some sectors reaching record highs last May. These markets have historically been dominated by a relatively small number of players - mining companies, specialist trading firms and brokers. However, the rise in prices has attracted a greater variety of institutional investors into the markets, including hedge funds and pension funds.

In fact, a number of analysts claimed the record high prices last year were driven