As global economic growth slowed in the second half of 2011 and the euro sovereign crisis escalated, base metal markets were battered by negative sentiment and endured price movements of as much as 10% in a single day. For many investors, the sharp rise in volatility and increase in correlations between different metals was a signal to either head for the exit or look for effective hedges.

“After 18 months of trending or range-bound markets, we saw levels of volatility that we had not