After strong performance from many commodity markets during 2010, many are talking about commodities being the place for investors to be in 2011.
We look at some of the hot sectors and identify factors that could drive prices further over the coming year.
Copper
It is hard to see the demand for copper falling away. Demand from China has seen the price soar and when you start to see copper cabling stolen from London tube lines, you begin to realise just how in demand the metal is.
Gold
Back in 2009 everyone pointed to a ceiling on the gold price of $1,000 dollars an ounce but it has long since passed that mark. Demand for jewelry from the developing world and the fact that it acts as a currency hedge means gold may have further yet to go.
Platinum
All precious metals have seen price spikes and platinum has been no exception. The fact that it is used extensively in the auto manufacturing industry has proved a fillip to the price. How bullish you are on platinum going forward very much depends on how confident you are of a global economic recovery.
Silver
Like all precious metals silver can be used as a hedge against inflation. It also has industrial uses – it is used in electrical appliances (silver is the highest known conductor of electricity).
Zinc
China's zinc output this year may is forecasted to soar 15% to 5 million tonnes. Once again the metal is used widely in the auto industry. Car ownership in China is still low but increases year on year so demand is likely to be for the long-term so supporting the price.
Coffee
Bad weather in coffee producing areas like Brazil and Vietnam put pressures on prices as too did the Columbian earthquakes. The price hikes have been bad news for coffee drinkers but good news for investors.
Sugar
Sugar prices have soared as global supplies have come under pressure. The recent cyclone in Australia sent prices higher again as the country is the third biggest producer of sugar.
Wheat
Rising demand for food stuffs from more affluent emerging markets coupled with crop failures notably in Russia where there were severe droughts and fires, have seen wheat prices rocket over the last year.
Cocoa beans
Chocolate lovers have felt the impact of rising cocoa bean prices – one contributory factor has been fear of export bans from the Ivory Coast which has led to massive buying sprees and subsequent price hikes. Major commodity traders buying enormous quantities of cocoa would indicate that there might be too much in the way of price manipulation in this particular market.
Iron ore
Demand for iron ore has remained strong. Last month BHP Billiton, the world's biggest mining company, posted a 4% rise in quarterly iron ore output to record levels to meet swelling demand from its main customers in China and other parts of Asia. However there are concerns that China's iron ore demand might crash if the Chinese government slams the brakes on their economy.
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