Metal prices bode well for a happy 2011

A happy New Year to all our blog readers. Metal prices have soared recently providing a fine start to the year with the promise of increased confidence in the minerals industry.

The price of copper has hit a new all-time high, peaking at $9,631.75 per metric tonne on the London Metal Exchange, its highest ever level, before falling back slightly. The metal has risen 30% in value this year, with half of that rise coming in the last month, the rally being driven by the global economic recovery and most countries holding low stockpiles.

Demand for copper and other industrial metals is outstripping supply, as industrial output by the emerging markets economies surges ahead of their pre-recession levels. In most parts of the world, future copper prices suggest there will be further near-term rises in the metal's value.

Copper is not the only industrial metal to do well this year. The price of nickel is up by a quarter, while tin has risen more than 55% in 2010.

Meanwhile, precious metals have shot up amid fears over the debts and loose monetary policies in Europe and the US. The price of palladium  rose 94% this year.