At high frequencies metals act like a plasma. The conduction electrons are free to flow around while the relatively massive ions remain more or less stationary. When we solve this in a plasma problem with incident electromagnetic waves, what happens is that we get a resonance frequency. Below the resonance frequency, the waves oscillate slow enough for the electrons to follow. Thus, the metal behaves as a good conductor because the currents that can be excited can properly cancel out the incident waves. However, above the resonant frequency, the inertia of the electrons prevents the electrons from oscillating in proper phase with the incident wave. Thus, the currents cannot be excited properly to eliminate the incident wave and now the wave can pass through the metal like it was a vacuum (but this is a dispersive and lossy vacuum).
If you solve for the dispersive curve, you get
[tex]\omega^2 = \omega_p^2+c^2k^2[/tex]
where \omega_p is the plasma frequency (which turns out to be the resonant frequency. Solving for the permittivity assuming vacuum permeability, we find
[tex]\epsilon = \epsilon_0 \left(1-\frac{\omega_p^2}{\omega^2}\right)[/tex]
Thus, we see that the equivalent permittivity that represents the previously described behavior requires that the permittivity become negative below resonance, when above the resonance the permittivity is positive.
However, it is my recollection that metals have their resonance frequencies below optical, in the terahertz range. I certainly know that silver's resonance is in the terahertz range and thus has a positive permittivity in the optical spectrum.