Many promising indicators speak for themselves, and that it is very much possible to achieve a high performance in the medium to long term with a physical investment in technology metals as well as in rare earth metals. These metals are very rare and worldwide demand will increase due to rapid technological progress. Furthermore, especially in emerging markets an above-average growth in demand can be expected.
A private investor has major advantages when doing a physical investment in technology metals compared to investing in commodities traded on the stock exchange.
No price change due to stock market speculations
An increase in value is not subject to any withholding tax (currently 25%)
After a one year vesting period no personal income tax is due
Via duty-free warehouses it is possible to purchase metals without VAT
In addition, considering the current global financial crisis, excessive public debt and therefore the imminent insolvency of entire nations, the benefits of investing in physical assets become quite clear. Physical tangible commodities are much more likely to safeguard personal assets in this difficult market environment and are able to provide protection against impending inflation.
A physical investment offers many advantages compared to stock exchange-traded commodities.
One of the main benefits is pricing, which cannot be influenced by stock market speculations. A number of terrifying examples could be given involving speculations with exchange-traded metals. One example to be mentioned is the price of silver in May 2011. It was controlled via measures implemented by the CME (Chicago Metal Exchange). Even without the actual trade of physically available silver, the price collapsed and decreased by a third.
The price of non-stock exchanged technology metals is always dictated by buying and selling physically available metals between market participants. It is determined by supply and demand – as with any other commodity.
Criteria to consider when choosing a vendor
The integrity of the market participants plays an important role. The manufacturing industry would be in good hands with a large supplier, who has a great reputation in the market and characteristics such as extended experience, transparent pricing, proof of all necessary certifications, international networking and trusted acceptance by the industry.
TRADIUM Limited with seat in the commercial metropolis Frankfurt am Main is one of the largest metals traders in Europe for technology metals and fulfils all of the mentioned requirements. Even the private investor is well taken care of here. Of course, the metals are special assets and stored separately for each client. They belong 100% to the customer, guaranteed through regular audits by chartered accountants. It is possible to visit the storage site by appointment.