Coal is ugly: belching smokestacks, vast mines ripped out of the earth, big black barges. But for investors, coal may be beautiful.
The attraction of coal is that it is cheap and plentiful. Coal prices have been rising sharply this year, but it may still be seen as a bargain at a time when crude oil is touching $145 a barrel. The fast-growing economies of China and India are big consumers of coal for their energy needs and to make steel. And even some power plants in Europe have switched from oil to coal.
Yet worries that a slowing global economy will reduce demand sent shares of shares of coal producers and other mining companies sharply lower on stock markets around the world this week.
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