Sector Focus 

Productivity under the surface

Productivity under the surface

Why invest in mining equities? One commonly held view – that, for example, a share in a copper miner is a bet on rising copper prices – is not backed by historical evidence. In fact, while commodity prices are mean-reverting, they are neither stable, easily predictable on a short-term horizon, or consistently inflationary. That’s despite being steered by two powerful inflationary forces: demand growth, and steady depletion of geological resources. In other words, while growing populations and economies are consuming ever greater quantities of metals, discoveries have slowed, and metal grades have thinned. And yet there's no guarantee prices will climb.

To continue reading, subscribe today

and enjoy unlimited access to the following:

  • Tips of the Week
  • Funds coverage
  • Weekly features on big investment themes
  • Trading ideas
  • Comprehensive companies coverage
  • Economic analysis
Subscribe to Investors Chronicle

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now