Copper in 2011: A Beijing Opera

Year 2010 had been good to almost all investment classes. Stocks, bonds, commodities, and the dollar are all moving higher in tandem, a first of such unison since 2005. Among them, commodities are leading the pack-- partly on dollar weakness, as well as propped up by world’s central banks quantitative easing.

Base metals, in particular, are further supported as China keeps on trucking with double-digit growth, despite that most of the world practically stood still during the worst global recession since World War II.

If you think Gold's 30% gain last year is impressive, one base metal -- Copper -- outshined the precious metal by rallying 33% on the year, and reached an all-time record in London, New York, and a 3-1/2 year high in Shanghai. Copper futures for March delivery on the Comex in New York stood at $4.4470 a pound at year-end, a record settlement.