Mining valuations look good despite market scepticism

UK GROWTH

When I was 16 my first economics teacher told me the price of any good or service is determined by the interaction of demand and supply.

I have never forgotten that, though there are times when I wonder if the stock market has. I am a long-term bull of the mining sector, mainly because of that little gem of economic theory I learnt nearly 30 years ago. But it does feel a lonely place at the moment – miners have been battered by the Greek debt crisis, signs of ‘tightening’ by the Chinese authorities and finally by a worse-than-expected change in the Australian tax regime. Yes, Southern European economies do face huge structural problems, but their contribution to global metals demand is minimal compared to the US ec...