Variation in price dependency measures on the london metal exchange

Eight tests of dependency are conducted on London Metal Exchange price date for separate years between 1972 and 1982. The results from the eight tests are combined to produce an overall ranking of the years by the extent of dependency exhibited. Similar patterns are exhibited across all the contracts tested. This is attributed to a common factor affecting all markets. The use of commodities as an inflation shelter by nontrade investors is suggested as a possible explanation.