Read Online The King of Oil: The Secret Lives of Marc Rich by Daniel Ammann - Free Book Online
Authors: Daniel Ammann
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created a new market for a commodity in the mid-1950s. He began to develop an interest in mercury when he was still only twenty-one years old. At the time mercury was used predominantly in thermometers, batteries, and detonators; trading was consequently limited, and the prices were low. Rich searched for available mercury with a determination that impressed his colleagues. Having analyzed the global political situation, he had come to the conclusion that mercury would soon be in great demand, which meant that there was business to be made.
The cold war was on the verge of escalating in the mid-1950s. The Communists, led by Mao Tse-tung, had seized control in China in 1949. The Korean War had erupted in 1950 and continued until the summer of 1953. In June 1953 Soviet troops had crushed an uprising in East Germany. The year 1956 saw the Suez Crisis, when Gamal Abdel Nasser of Egypt nationalized the Suez Canal and was opposed by Great Britain, France, and Israel. The Soviet Red Army marched into Hungary in the same year to defeat the popular uprising against the Soviet-backed government.
When Rich started trading in mercury, all the indications were pointing to war. “He called any producer who had the slightest connection to mercury in order to buy the stuff,” remembers a colleague. He located his first source at the Spanish mining company Consejo de Administración de las Minas de Almadén y Arrayanes, which is known as Mayasa today. Before long he had established good relationships with producers and consumers and was regarded as an expert in the mercury trade.
Meanwhile, the demand for the commodity soared. The United States government, with Republican President Dwight D. Eisenhower at the helm, commenced a rearmament program that saw the air force and army increasing their stocks of mercury by over 50 percent. The United States bought commodities in huge amounts. Mercury had only been used for batteries since the mid-1940s, but now the market was booming. Due to their longer life spans, mercury batteries were mainly used in military equipment such as walkie-talkies, metal detectors, and other electronic devices.
Sensitive Assignments
Rich was now the man to see when it came to mercury. It was his first business coup, and it earned significant profits for Philipp Brothers. The young dealer had not been at Philipp Brothers very long, yet this success strengthened his position enormously within the company. It was proof to his superiors that he had the talent to spot opportunities, the courage to grasp them, the patience to successfully conclude a deal, and enough common sense to avoid excessive risks.
When the manager of the Bolivian office of Philipp Brothers had to travel back to England because his mother was having an operation, it was immediately clear who would replace him. Henry Rothschild sent Rich for six months to the same South American country where David Rich had also done business. Bolivia was a dangerous place known for its political and economic instability. A nationalistic movement had brought about a revolution in 1952, and the country’s large mines had subsequently been nationalized. The South American country has been an important source of silver, tin, and tungsten since the sixteenth century. Rich not only learned perfect Spanish in La Paz, Bolivia, he also picked up the essentials of doing business in politically volatile countries. He was evidently very adept in his dealings. A partner at the time relates how he always kept the risks under control und managed to establish good contacts thanks to his quiet, modest style.
Following his success in Bolivia, Philipp Brothers sent its rising star to South Africa for the first time in 1958. At that point the country was still in the Commonwealth, and the trade boycott against the apartheid regime had not yet begun. It was a journey to his first defeat. Rich thrashed out the details of the sale of a manganese ore mine for months on end, and he
The cold war was on the verge of escalating in the mid-1950s. The Communists, led by Mao Tse-tung, had seized control in China in 1949. The Korean War had erupted in 1950 and continued until the summer of 1953. In June 1953 Soviet troops had crushed an uprising in East Germany. The year 1956 saw the Suez Crisis, when Gamal Abdel Nasser of Egypt nationalized the Suez Canal and was opposed by Great Britain, France, and Israel. The Soviet Red Army marched into Hungary in the same year to defeat the popular uprising against the Soviet-backed government.
When Rich started trading in mercury, all the indications were pointing to war. “He called any producer who had the slightest connection to mercury in order to buy the stuff,” remembers a colleague. He located his first source at the Spanish mining company Consejo de Administración de las Minas de Almadén y Arrayanes, which is known as Mayasa today. Before long he had established good relationships with producers and consumers and was regarded as an expert in the mercury trade.
Meanwhile, the demand for the commodity soared. The United States government, with Republican President Dwight D. Eisenhower at the helm, commenced a rearmament program that saw the air force and army increasing their stocks of mercury by over 50 percent. The United States bought commodities in huge amounts. Mercury had only been used for batteries since the mid-1940s, but now the market was booming. Due to their longer life spans, mercury batteries were mainly used in military equipment such as walkie-talkies, metal detectors, and other electronic devices.
Sensitive Assignments
Rich was now the man to see when it came to mercury. It was his first business coup, and it earned significant profits for Philipp Brothers. The young dealer had not been at Philipp Brothers very long, yet this success strengthened his position enormously within the company. It was proof to his superiors that he had the talent to spot opportunities, the courage to grasp them, the patience to successfully conclude a deal, and enough common sense to avoid excessive risks.
When the manager of the Bolivian office of Philipp Brothers had to travel back to England because his mother was having an operation, it was immediately clear who would replace him. Henry Rothschild sent Rich for six months to the same South American country where David Rich had also done business. Bolivia was a dangerous place known for its political and economic instability. A nationalistic movement had brought about a revolution in 1952, and the country’s large mines had subsequently been nationalized. The South American country has been an important source of silver, tin, and tungsten since the sixteenth century. Rich not only learned perfect Spanish in La Paz, Bolivia, he also picked up the essentials of doing business in politically volatile countries. He was evidently very adept in his dealings. A partner at the time relates how he always kept the risks under control und managed to establish good contacts thanks to his quiet, modest style.
Following his success in Bolivia, Philipp Brothers sent its rising star to South Africa for the first time in 1958. At that point the country was still in the Commonwealth, and the trade boycott against the apartheid regime had not yet begun. It was a journey to his first defeat. Rich thrashed out the details of the sale of a manganese ore mine for months on end, and he
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