The Russian-based manager of a metals and mining hedge fund, that returned over 100% last year, is adding exposure to gold companies in the belief that the price of the metal could pass $1700 (E1253) this year and gold will outperform all other metals on a relative basis.

Ryan Dodd, of Specialised Research and Investment Group, or SPRING, believes that gold, which was trading at $1122 this morning, has much higher to go this year. He said: "$1500-$1700 is not in the realm of craziness".