Understanding commodities also allows you to understand the world around you. For commodities are found around the world, it influences the governance of the country and equally important how and why the commodity price moves up and down.

In the book Gold, Oil and Avocados by Andy Robinson, published by Melville House, Brooklyn, New York, 2021 the author focuses on Central and South America’s economies through commodities.

When Columbus made trips to the Caribbean Islands and Mexico, he eventually brought gold back with him and stories of more gold and silver to be found. The Spanish government sent a new group of explorers, the Conquistador whose purpose was to send gold and silver back to Spain, as well as Catholic priests to change the religion of the lands. Enough gold and silver were sent back to Spain to make it the wealthiest country in Europe and have a significant influence of religion and governance in Europe. The mountains of the Andes contain vast mineral deposits including gold and there are many mines still operating and to be found. Ever since gold was found, the best way to separate it from the rock is to use mercury and cyanide. In means that pools or ponds of water with the chemical are formed, and with multiple mines operating it is not hard to find one that breaks. The water of minerals gets mingled with good water causing the river to die for a period of years. In addition, finding gold means people flock to the area and there will be and are conflicts on whose land it is.

The term Banana Republic does not refer to the clothing store of the same name but the food many of us eat on a regular basis the banana. The banana was imported into the US and people developed a habit of eating them. As the demand grew the consolidation of companies grew and a company called United Fruit emerged as a dominant player. For years, the headquarters were in Boston, and it was a great dividend paying stock. The banana republic term is the way the company managed its operations. The company backed by the US government’s intervention, if necessary, essentially took over a 1/3 of the country for its operations. it ran the plantations, the railroad, the ports, the utilities – mail, light, telegraph and telephone to ensure bananas were available for consumers. If the government objected or wanted great changes, the government through the CIA and other agencies changed to politicians who interests aligned with the company and the US. Eventually the government broke up United Fruit to the companies we have today.

The book discusses minerals of niobium, coltan, and diamonds, potatoes, copper, lithium. quinoa and silver.

Linking to dividend paying stocks, if you consider Thomas Edison, he famously said he made thousands of experiments to ensure he learned the best one to ensure people could use the light bulb. Not only did he have to find a light bulb that people could use but the materials the light bulb could be reproduced at an affordable price. The final result is essentially what we have today and then industries were formed to produce the raw materials and the finished product. Every product goes through the same stages, invention to finding raw materials to finding alternative materials at the right price for the right market. Many of those rights have alternatives, which is good for consumers. For investors the question is why is that the right …

There are more questions than answers, till the next time – to raising questions.