Global markets and their effects

When prices rise in the markets, investment capital flows in, but when prices fall, investment in companies decreases.

However, companies are not abandoning old methods.

To some extent, this is an excuse to ignore the standards, but even experienced traders know that markets are volatile.

If companies want to “profit” from higher prices, they must be able to produce at those higher prices.

Industrial mineral prices were low before 2000, but over the last two decades, China began building its infrastructure, transforming itself into a global power with unprecedented economic growth.

The demand for industrial minerals reflects the growing demand for oil and natural gas, whose supply is limited by conflicts and geopolitics.

Meanwhile, the Great Recession of 2008 quadrupled the value of gold as both currency and U.S. investment, causing a boom in the Panamanian market, which increased its income by 150% between 2000 and 2003.

After the stock market crash in 2014, many companies reinforced their dividend strategies.

They invested wisely and created an economic system based on national interests.

The Reality of Political Risk in the Markets

Just as with mineral rights in advanced economies, in almost all Latin American countries, underground resources are owned by the state, not by landowners.

This includes private property but also public property and land granted by the government to tribal and traditional communities.

As a result, the relationship between the state and private companies is defined by the policies shared by the state and the promoter, as well as by the allocation of costs and benefits to extractive industries.

Landowners may not have rights to the resources but have the power to prevent development through widespread protests involving the establishment of a pro-family government.

Passive sectors are “capital-intensive” – a term used to describe companies that require large capital investments before they can turn a profit.

Building industrial mines will cost over a billion dollars.

For a decade, sometimes two, deposits of ore have been extracted and processed, and the production of oil and gas has been massive.

Seismic surveys and costly exploratory wells have been drilled in the fields, many of which ended up failing.

Time itself is a problem because time is money.

Source of information: brasil.mongabay.com

\