The present invention is directed to a method of manufacture of metal or alloy powders that uses liquid phase reduction of a metal halide, or a mixture of metal halides, to produce a metal particle coated in salts produced as a reaction byproduct. The reaction conditions can be chosen to select a range of metal particle sizes, and the salt coating prevents oxidation (or reaction with other atmospheric gases) and permits a range of applications hitherto difficult to achieve using metal powders.