Mining stocks are publicly traded companies that find, extract, and process the raw materials that power the global economy. These materials range from precious metals like gold, silver, platinum, and palladium to industrial metals such as copper, iron ore, aluminum, and nickel. The mining industry also produces construction materials, energy resources, and key agricultural inputs like fertilizers.

Because these resources are essential for building products, infrastructure, and technology, demand tends to rise when the economy is growing, pushing prices higher. But mining is a cyclical business. When economic activity slows, demand for raw materials often falls, and mining stocks can decline sharply.

That cyclicality makes stock selection…