The metals bubble

After a virtually non-interrupted two-year bull run, metal prices have dropped sharply from their highs last May. How have investors reacted to the change in conditions? Jayne Jung reports

Metals prices have 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 achieved last year

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