Market Vectors Coal ETF (NYSEArca: KOL) is up 224.9% off the low. Oil prices topping off in the low $80 range helped boost coal plays since March 9. Coal prices had an assist in recent months as those in the colder climes crank up the heat and push demand higher, eating into what had been a surplus. And last year, China shifted from being a coal exporter to an importer, shifting the dynamics of pricing. [Why Coal is Leading the Energy Sector.]

Market Vectors Indonesia ETF (NYSEArca: IDX) is up 203% off the low. Indonesia has been one of the powerhouses of the recovery. Influential global asset manager Templeton Asset Management said that Indonesia could be ready to become a member of the BRIC. President Susilo Bambang Yudhoyono expects the country’s growth to average 6.6% over the next five years. Indonesia recently had its sovereign debt upgraded to one level below investment grade by Fitch Ratings firm. [Is Indonesia BRIC Material?]

Market Vectors Steel (NYSEArca: SLX) is up 180% off the low. A global recovery led by emerging markets, a pickup in global auto demand, tight mine supply growth and more demand for investment are seen as being the primary drivers of any gains in metals this year. Steel is a key component in all kinds of infrastructure and building projects, putting it in prime position to benefit in recoveries. [Metals and Mining Outlook.]

iShares MSCI Turkey Index (NYSEArca: TUR) is up 178% off the low. Turkey has seen a shift in the last year: its government bond rating was raised by Moody’s, Fitch and S&P. Turkish banks also managed to get through the crisis without seeking aid from the government. But trouble lurks: A coup in the country threatens to undo its hard-won growth. [Turkey's Coup Troubles ETF.]

Market Vectors Russia (NYSEArca: RSX) is up 176% off the low. While Russia is no less secretive than it was before the crisis, the economy has at least delivered the goods so far. It’s  estimated to grow around 3.5% this year. In January, industrial output in Russia jumped 7.9% year-over-year. The Federal Statistics Service reported that industrial output dropped by 10.8% last year. Car and locomotive manufacturing increased by three-fold year-over-year. But will Russia diversify far beyond oil and gas? Whether it does could determine its long-term prospects for health. [Russian Central Bank Lends a Helping Hand.]

SPDR S&P Metals & Mining (NYSEArca: XME) is up 160% since the low. XME is another ETF in a prime position to trend up as the economic recovery continues. Add in an increasing federal deficit coupled with a large decline in the U.S. dollar, and it may eventually translate into rapid inflation and higher metal prices. As an equities-based ETF, it tends to have less volatility than ETFs backed by physical metals or futures contracts. Added bonus: Mining companies can continue to do well if a commodity’s price falls back, but remains far above the cost of production. [Guide to Metals ETFs.]

SPDR KBW Insurance (NYSEArca: KIE) is up 164% off the low. Insurers were one of the most embattled sectors a year ago. The industry’s leader, AIG, is still finding ways to pay back a massive bailout by selling off certain units. A British company has signed on to buy AIG’s Asia life insurance business for $35.5 billion. The deal would mean the largest repayment yet of the whopping $180 billion the government fronted AIG. The Federal Reserve of New York would grab the first $16 billion from the sale. This week, AIG sold its foreign life insurance business to MetLife for $15.5 billion. [More on Insurance.]

SPDR KBW Bank (NYSEArca: KBE) is up 152% off the low. This one is proof that the most beaten-down sectors in a crisis tend to perform among the best in recoveries. The most recent dip in major bank stocks came after President Barack Obama announced increased bank regulations. Critics see this as an attack on the fundamental business model and Congressmen are in no real rush to push the changes. The most prominent bullish argument for banks is the yield curve slope, which allows banks to make profits on the widening rate spread. [Why Big Banks May Be Big Performers.]

For full disclosure, Tom Lydon’s clients own shares of XME.

Max Chen contributed to this article.

Examine a list of the top-performing funds in the last month, and you’ll find it lousy with base and industrial metals. [Metals and Mining ETF Outlook.]

Among the funds showing the most strength in recent weeks include:

• SPDR S&P Metals & Mining (NYSEArca: XME), up 23.1% in the last month

• Market Vectors Steel (NYSEArca: SLX), up 20.2%

• iPath DJ AIG Copper (NYSEArca: JJC), up 18.8%

• Market Vectors Coal (NYSEArca: KOL), up 18.4%

Even iShares MSCI Australia (NYSEArca: EWA), a proxy for basic materials if there ever was one, has gone gangbusters in the last month, shooting up 15%.

What gives?

• Some risk appetite is returning. Greece still has no clear resolution to its crisis, but assurances that a deal is close has lured more investors to come out and play. [9 ETFs for Dollar Bears and Bulls.]
• Emerging markets, as usual. China, especially, has led the drive to consume copious amounts of copper and steel. But don’t forget other emerging markets. India, Brazil, South Africa, Egypt and others are in various stages of amassing raw materials to support their growth efforts. [China's Buying Spree.]
• Supply and demand. Mother nature has crimped Chile’s efforts at mining and producing copper. While the country’s miners are mostly back and running, aftershocks could threaten progress. China is rabidly consuming coal and iron ore, but they’re two of the commodities in shortest supply. [The Outlook for Coal and Steel.]

For full disclosure, Tom Lydon’s clients own shares of EWA and XME.

An increasing federal deficit coupled with a large decline in the U.S. dollar may eventually translate into rapid inflation and higher metal prices, while the dollar’s recent strength and higher interest rates could mean that precious metals will drop in value, comments Jonathan Bernstein for ETFZone. [Hedge Inflation With These ETFs.]

That’s why investors need to be prepared to act accordingly. Not all metals have a similar reaction to shifting market conditions.

ETFs offer exposure to precious metals such as gold, silver, platinum and palladium, and base metals like copper, nickel and lead. Precious metals are lightly counter-cyclical, affected by interest rates and the dollar, while base metals are highly cyclical, performing well in a strong economy. [4 Factors Influencing Metals ETFs.]

Commodity ETFs come in a variety of incarnations; which you choose is up to you. It depends on the kind of exposure you want, what kind of risk you’re willing to endure and taxes you’re willing to deal with.

Funds can be physically backed by the metal itself, it can have ownership of futures contracts to buy the metal, it can hold companies involved in the mining and production of a metal. [Copper ETN: Forging Ahead?]

A fund that is backed by the physical commodity has the metal stored in a vault. Investors should note that these funds have storage fees calculated into their expense ratios. Also, physical bullion trades are taxed by the IRS at the collectibles rate of 28% instead of the long-term equity rate of 15%. Investors should still consult their tax experts for specific advice, though. [What's Driving Platinum and Palladium ETFs?]

• SPDR Gold Shares (NYSEArca: GLD)
• iShares COMEX Gold Trust (NYSEArca: IAU)
• iShares Silver Trust (NYSEArca: SLV)
• ETFS Physical Gold (NYSEArca: SGOL)
• ETFS Physical Silver (NYSEArca: SIVR)
  
• ETFS Physical Platinum Shares (NYSEArca: PPLT)
• ETFS Physical Palladium Shares (NYSEArca: PALL)

Funds may also own futures contracts to buy the metal. Contracts are rolled over before expiration, and another contract is purchased in its place. Rolling over contracts generates trading fees. Futures contracts are taxed at a lower maximum rate of 23%.

• PowerShares DB Precious Metals Fund ETF (NYSEArca: DBP)
• PowerShares DB Base Metals Fund ETF (NYSEArca: DBB)
• PowerShares DB Gold Fund ETF (NYSEArca: DGL)
• PowerShares DB Silver Fund ETF (NYSEArca: DBS)
• Ultra Gold ETF (NYSEArca: UGL)
  
• ProShares UltraShort Gold (NYSEArca: GLL)
• ProShares Ultra Silver (NYSEArca: AGQ)
• ProShares UltraShort Silver (NYSEArca: ZSL)

Many metals ETFs give investors exposure to the companies that mine and produce the metals. While such funds don’t give you access to spot prices, they have their own advantages. One big one is that mining companies can continue to do well if a commodity’s price steps back, but remains far above the cost of production. Such funds also lack the big day-to-day swings that have a tendency to vex futures- and physically-backed metals ETFs.

• SPDR S&P Metals & Mining (NYSEArca: XME)
• Market Vectors Gold Miners (NYSEArca: GDX)
• Market Vectors Junior Gold Miners (NYSEArca: GDXJ)
• EGS DJ Emerging Markets Metals & Mining Titans (NYSEArca: EMT)

Lastly, funds may offer exposure through notes or exchange traded notes (ETNs). ETNs are taxed by the long-term equity rate of 15%. ETNs are unsecured debt backed by the full faith and credit of the issuer. They have no tracking error. [ETNs: Everything You Want to Know.]

• ELEMENTS Rogers International Commodity Metal ETN (NYSEArca: RJZ)
• E-TRACS UBS Bloomberg CMCI Industrial Metals ETN (NYSEArca: UBM)
• iPath DJ AIG Industrial Metals ETN (NYSEArca: JJM)
• PowerShares DB Base Metals Long ETN (NYSEArca: BDG)
• iPath AIG Copper (NYSEArca: JJC)
• iPath DJ AIG Lead (NYSEArca: LD)
• iPath DJ-AIG Aluminum (NYSEArca: JJU)
• iPath DJ AIG Nickel (NYSEArca: JJN)
• E-TRACS UBS Platinum (NYSEArca: PTM)
• iPath DJ AIG Platinum (NYSEArca: PGM)
  
• PowerShares DB Gold Short ETN (NYSEArca: DGZ)
• E-TRACS UBS Short Platinum ETN (NYSEArca: PTD)
• PowerShares DB Base Metals Double Long ETN (NYSEArca: BDD)
• PowerShares DB Base Metals Double Short ETN (NYSEArca: BOM)
• PowerShares DB Base Metals Short ETN (NYSEArca: BOS)
• PowerShares DB Gold Double Long ETN (NYSEArca: DGP)
  
• PowerShares DB Gold Double Short ETN (NYSEArca: DZZ)

For more information on metals, visit our precious metals category or base metals category.

For full disclosure, Tom Lydon’s clients own shares of XME.

Max Chen contributed to this article.

Don Dion for The Street notes that several factors play into performance of industrial and base metals:

• Speed and extraction of the metal in the production and mining process.
• Individual, company or sovereign inventory levels; low levels stoke demand, high levels depress it. [Is the Base Metals Run Done?]
• The value of the dollar; a strong dollar tends to decrease demand, a weak dollar improves it.
• China, China, China. The rapidly expanding country has been on a metals buying binge for awhile now. [Metals ETFs: Do They Have Stamina?]

As commodities, metals can be fickle and sensitive to shifting conditions, so it’s key to have your strategy in place before you buy, be prepared to act and watch the trend lines to spot entry and exit opportunities. Equity ETFs might be appealing for investors who want a fund that’s less sensitive to day-to-day price movements. If you’d like exposure that tracks a little closer to the spot price, dig into some of the metals funds that hold futures contracts. [How to Follow Trends.]

For more stories about base metals, visit our base metals category.

• PowerShares DB Base Metals Fund (NYSEArca: DBB)

• SPDR S&P Metals & Mining (NYSEArca: XME)

• iPath DJ AIG Aluminum TR Sub-Idx ETN (NYSEArca: JJU)

• Market Vectors RVE Hard Assets Prod ETF (NYSEArca: HAP)

For full disclosure, Tom Lydon’s clients own shares of XME.

An analyst with HSBC recently noted what he sees are the top opportunities in the metals and mining sector. The Wall Street Transcript says that the places to go this year will likely be bulk commodities, such as iron ore, coal, thermal coal and metallurgical. [Metal and Mining Sector's Challenges.]

Coal presents an especially good opportunity, says the analyst. China is rapidly consumingcoal and iron ore, but they’re also two commodities in shortest supply. China’s demand is also such that coal can’t be produced quickly enough to cover it. [What Commodity ETFs Are All About.]

A similar rosy outlook for the platinum market is forecast, too. Last year, the group of six metals known as the platinum group metals (PGMs) outperformed gold and this year should bring more of the same, says Wong Eng Soon for the Business Times. A pickup in global auto demand, tight mine supply growth and more demand for investment are seen as being the primary drivers of any gains. [10 ETFs Advisors Like Most.]

For more stories about metals and mining, visit our metals and mining category.

• SPDR S&P Metals & Mining (NYSEArca: XME)

• Market Vectors RVE Hard Assets Prod ETF (NYSEArca: HAP)

• Emerging Global Shares Metals & Mining (NYSEArca: EMT)

• Market Vectors Steel (NYSEArca: SLX)

• ETFS Platinum Shares (NYSEArca: PPLT)

For full disclosure, Tom Lydon’s clients own shares of XME.

The price of base metals like copper and aluminum are rising, emerging from under a shadow that oil has long cast. Will Smale for BBC News reports that a growing number of metal mining companies have slipped into the FTSE 100 index of leading U.K. shares, many possessing names that are not English. What’s going on?

• China’s insatiable appetite for raw materials has sent prices upward
• A general global economic recovery, lending support to metals prices
• A softening dollar; if the dollar remains weak, it will mean commodities priced in greenbacks will be cheaper for overseas buyers

Look out for potential minefields, though. A big one weighing on the minds of investors is the debt situation in Greece. Fears over the outcome could lead to some pricing volatility.

Allen Syorka for The Wall Street Journal reports that a weaker U.S. dollar and an increase in London Metal Exchange canceled warrants pushed copper to two-week highs today. Warrants are documents of title for a specified lot of metal in a specific location. When those warrants are canceled, it generally means it’s been earmarked for delivery. In other words, there’s more physical demand.

For more stories about metals, visit our metals & mining category.

• iPath Dow Jones UBS Copper Tr Sub-Index ETN (NYSEArca: JJC)

• SPDR S&P Metals & Mining (NYSEArca: XME)

• PowerShares DB Base Metals (NYSEArca: DBB)

Yesterday, most metals finished lower after China made more moves to curb lending and rein in growth. Several large banks in the country were singled out and required to raise their reserve ratios, reports Nick Godt for MarketWatch.

Copper was especially feeling the pressure and futures declined nearly 2% in trading today. Copper could be hit hard if tightening in China translates into reduced demand for the metal. The dollar also strengthened yesterday, further tamping down demand, reports Allen Sykora for The Wall Street Journal. [Opportunities in other metals?]

Metals like copper, silver and aluminum have benefited in recent years from the huge increase in demand, particularly from China. As the global economic recovery deepens and emerging nations industrialize, many believe that demand for these metals should continue in the long run. [A deeper look at copper and its near future.]

Among the believers is the International Monetary Fund (IMF), which said today that it expects commodity prices to continue to rise amid recovery. In the short-term, though, base metals may be taking their cues from the dollar, economic numbers and the overall risk appetite in the markets, reports Commodity Online.

For more stories about base metals, visit our base metals category.

• SPDR S&P Metals & Mining (NYSEArca: XME)

• iPath DJ AIG Copper TR Sub-Index ETN (NYSEArca: JJC)

• iPath DJ AIG Aluminum TR Sub-Index (NYSEArca: JJU)

• PowerShares DB Base Metals (NYSEArca: DBB)

Among the potential challenges metals and mining ETFs could be facing in the coming months include:

• China. Investors are primarily concerned about any slowdown in the Chinese economy, which could have a contagion effect in the metals market. China’s imports of refined metals grew a whopping 126% last year, reports BusinessWeek. To some, it’s vitally important that China keep up that pace or even extend it.

• Energy in South Africa. Eskom has made application for a 35% tariff hike after its 45% application hit a rock late late year, and the lowered price demands come after the unions, the business sector and other players attacked. The South African utility company has been struggling to source funding for its expansion program, with very little coming from the government itself, reports Afrol News.

The industry has some positive things to watch out for in the future, as well:

• M&A. Canada’s mining patch is undergoing many take-over deals, as steadily rising metal prices may drive busy dealmaking in 2010 after a lull in acquisitions last year. Many of  the miners financial positions are healthier now, as new sources of financing are now opening up. China has opened up its coffers to the larger players in hopes of smaller developers taking the bait, as well, reports Cameron French for Reuters on Canada.com. [How will metals ETFS keep going strong?]

• Imports and Exports. Chinese data for commodity imports and exports have surpassed all expectations. The Chinese government reported recently that the country’s exports for December jumped 17.7 %, breaking a 13-month losing streak. China’s finance minister also said that the government would probably spend the full amount of planned stimulus in 2010, despite improvements in its economy and efforts to control bank lending, reports AAP on BusinessDay.

For more stories about metals and mining, visit the metals and mining category.

• SPDR S&P Metals & Mining (NYSEArca: XME)

• Market Vectors RVE Hard Assets Prod ETF (NYSEArca: HAP)

• Market Vectors Gold Miners (NYSEArca: GDX)

Hopes for a global economic recovery and inflationary precautions have helped metal shares and ETFs stay in peak performance. Carolyn Cui for The Wall Street Journal reports that while commodity prices rebounded sharply from lows early in 2009, most closed well below records set before the economic crisis began in 2008, illustrating where we really are in the economic recovery. [Is it time to be bullish for base metals?]

Demand from emerging economies as well as the catch-up phase for developing economies should help lift up demand and keep it strong. This year should see a continuation of the building efforts of emerging economies, and demand for base metals is likely to get further support as Western manufacturers start to rebuild their inventories. [How hard assets can help your portfolio.]

Last year was a banner one for base metals. Copper, which has many industrial uses, more than doubled, soaring 139%. It ended the year at $3.3275 per pound but still 18% shy of record prices hit in 2008. Lead, which is used in car batteries, also more than doubled to $2,416 a metric ton, followed by zinc, which was up 125%, and aluminum, gaining 50%. [What is in store for commodities in 2010?]

Whether the trend is sustainable is really only a prediction; watch the trend lines for signals of any potential long-term uptrend. [How to follow trends.]

For more stories about metals and mining, visit our metals and mining category.

• SPDR S&P Metals & Mining (NYSEArca: XME)

• Market Vectors RVE Hard Assets Prod ETF (NYSEArca: HAP)

• iPath DJ AIG Aluminum TR Sub-Idx ETN (NYSEArca: JJU)

• iPath DJ AIG Lead TR Sub-Idx ETN (NYSEArca: LD)

• PowerShares DB Base Metals (DBB)

A weaker U.S. dollar and overall commodity strength has given gold another rally, sending it up to $1,159.50 an ounce on the Comex division of the New York Mercantile Exchange. Allen Sykora for The Wall Street Journal notes that a softer greenback makes all dollar-denominated commodities cheaper in other currencies and thus can help demand. Gold also benefits from its position as a weak-dollar hedge.

Analysts said risk appetite for commodities as an asset class also was helped by data showing that China’s imports rose 56% last month. China was most voracious for oil and iron ore, and analysts believe that overseas demand should remain robust for the time being. [Why gold prices are through the roof.]

Meanwhile, a U.S. ETF launch of a platinum- and palladium-focused fund have given investors their first opportunity to own the metal through this type of investment. [Read about the launch here.] There’s big demand for such products: the other major operator of precious metals ETFs in Europe, Zurich Cantonal Bank, said its platinum-backed product also more than doubled in size last year, reports Jan Harvey on Reuters.

There are a variety of ways to play metals with ETFs: with physically-backed funds, funds that own futures and funds that own metals and mining companies. To get the exposure you’re looking for, take a peek under the hood to be sure you’re getting the ETF you want.

For more stories about platinum or gold, visit our precious metals category.

• SPDR Gold Shares (NYSEArca: GLD)
• SPDR S&P Metals & Mining (NYSEArca: XME)
  
• Market Vectors Gold Miners (NYSEArca: GDX)
• iShares COMEX Gold Trust (NYSEArca: IAU)
• PowerShares DB Gold Fund (NYSEArca: DGL)
• ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)
• ETFS Physical Platinum (NYSEArca: PPLT)
• ETFS Physical Palladium (NYSEArca: PALL)
• iPath DJ AIG Copper TR Sub-Index (NYSEArca: JJC)