And that's the essential logic behind my purchase of 2,770 shares at 787.5p a piece in copper producer Antofagasta (ANTO) for the Bearbull Income Portfolio. Of course, there is a bit of detail, too, so let's start with the reasons why an investor should be reluctant to put capital into Antofagasta's shares; relegate those to a side issue and the case for buying becomes more plausible.
The background concern is that the global commodity boom is over. It served miners wonderfully well for much of the 'noughties', but now that growth in China is less frenzied and sustained growth throughout the developing world no longer a given, then that boom is over. Meanwhile, the natural - though delayed - response to higher prices is more production, which may mean that global copper output exceeds demand, letting prices slip further. A surplus was expected in 2013 - but did not materialise - and looks more likely this year. Link these bearish factors to rising cost pressures and the profitability of copper producers looks seriously undermined.