China’s Easy Money Floods Metals as Real Economy Lags

With ample cash but fewer investment options, Chinese speculators have fanned a rally in global metals prices, underscoring just how difficult it is for authorities to channel capital into the real economy.

International prices of base and precious metals, which are heavily keyed to demand in the world’s biggest buyer, went stratospheric last month. Copper, gold and silver all hit record highs, and activity on Chinese futures markets has soared.