Asset protection with special metals - not just rare earths are in demand!

Published October 19, 2011 | By Swiss Metal Assets

The trend toward physical assets such as special metals will be long term and sustainable," Gunther Maassen

Translated from the original German Article that can be found here:

http://www.foonds.com/article/16165//fullstory

Due to the distrust of paper money system escape investors more and more into real assets. Besides real estate , precious metals and commodity exchanges traded commodities , however, there are other commodities which are increasing the interest of investors. Namely Special Metals Exchange Express spoke with the manager of the venerable German metal dealer Haines Maassen (www.hain-maassen.com) Mr. Gunther Maassen.

BE: Mr. Maassen, you will see an increased interest from investors, including you offer specialty metals investing?

For about four years recorded Haines and Maassen an increasing demand from investors for specialty metals such as indium, gallium and hafnium.

BE: Why do you advertise on a site for commodity investors? Should this be expanded in a targeted area?

Haines & Maassen has over 60 years and active trading in the metal during this period was continuously expanded the offering plate. This particular segment is not promoted specifically, but we have adapted to the needs of this industry and adapted our offerings accordingly. We see our role as a family but in the metal trade, and not as a financial investment advisor.

BE: Is it worth an investment at all in special metals? If an investor wants to sell the purchased metals again, how great the loss is due to the trading range?

Since we are not investment advisors, we want to leave the decision up to our customers. The fundamentals of supply and demand shall, however, seems to indicate that the sustained demand for many of these elements exceed the bid. When individual elements are signs of a significant shortage. Leading research institutions around the world, for example, predict a significant shortage of indium in the next 10-20 years. Include items such as tantalum, hafnium, and tellurium show depletion trends. The trading range in the metal trade the usual manner 10 to 20% higher.

BE: Is it for your company at all interesting to supply retail customers or are you collaborating with distributors for small deliveries to private homes?

Even as larger trading company, we look forward to every customer and ensure a competent, based on years of service experience. Each customer, whether he now buys 1 kg or 100 kg of indium, tantalum is just treated as an industrial consumer. For several years we have worked successfully with companies that have created the special baskets for consumers. Leading role in this market is the Schweizerische Metallhandels AG / Switzerland, which brought the first company to a sustainable system for investors in the market. This trained and experienced intermediaries has developed standardized solutions to investors to provide with smaller sums, the opportunity to participate in the development of strategic special metals.

BE: Is there or are you planning it, the metals are VAT-free to keep investors in a bonded warehouse ?

No, this service leaves Haines & Maassen companies like the Swiss metal trading SMH AG, which take on a pioneering role in this field. We see our task in the expert advice and supplies to customers. This has meant that our company has occupied in the commercial sector is not more than 70% of jobs with academics. Chemists, economists, certified interpreter and aspiring metallurgist to join our team. . This allows us a targeted advice at a high level.

BE: Which of you offer metals were the highest price increases in recent years?

There are a number of metals such as rare earths (neodymium, cerium, lanthanum, …) and tellurium, tantalum, indium, gallium, hafnium, and that have experienced including price developments of more than 100%. Appears much more important to us, however, that the price developments of several of these elements in the long term exceed the inflation rate and thus suitable as a value assurance.

BE: Which you can see because of the supply situation and the future demand (particularly by new technologies), the highest price appreciation potential?

This would I got the book “Strategic Metals for investors,” by Michael and me Vaupel point, which is launched in early November. Here it is precisely this question at the center. Of promising innovations will be closed to the required raw materials, which then permits a conclusion on price trends. We specifically do not want to move a single metal in the foreground, but on the contrary believe that a healthy mixture of different metals, the better alternative. BE: Which metals has China as the rare-earth quasi-supply monopoly , China has some metals offer a market share exceeding 50%. about 90% antimony, bismuth, germanium, about 67% about 67%, 60% indium, about 67% silicon and tungsten over 80%. These are just the elements in which China holds more than 50%. There is also a long list of substances for which the People’s Republic plays a significant role.

BE: Some metals are toxic or dangerous now. Is not that problematic when investors rush to such materials and store them at home? Or. even allowed all metals to be delivered?

Yes, clearly this is problematic and it is forbidden even in a single well. The delivery of some metals to individuals such as arsenic, selenium and tellurium are not only forbidden, but also jeopardize the customer. The transport is subject to restrictions. Here it is important that it is made clear in the consultation, where the boundaries of a private storage are located.

BE: What are the traded you metals for investors at all in question and which are ruled out?

This question is very complex and I would again like to the book “Special Metal for Strategic Investors” link. There are plenty of metals that can store private (indium, tantalum, etc.), and there are metals that can be stored without problems by specialist companies (gallium, tellurium, etc.). When no sense can be considered elements that can fail either due to technical reasons (explosive, very toxic ..) or claim due to a relatively low price, very substantial storage space would be (lithium, manganese …).

BE: Why are entirely at your rare earths?

Excluded from the program they are not, if a customer wants to purchase rare earths we can offer him.

BE: Which of the traded you metals are traded on commodity exchanges?

To reach Western markets, these are only molybdenum and cobalt in the form of oxides. In China, there are over 200 raw evil, but they are for the West not accessible or meaningful.

BE: Do you think the interest in physical metal investment for temporary or if the stay a permanent plant-fixed point?

I am personally of the opinion that the trend towards be physical forms of investment is long term and sustainable. Haines & Maassen has set himself definitely on this development and the capacity significantly. For about six months, we have another large warehouse, which predominantly serves the industry as a reloading and packaging facility.

BE: How serious is the market for metals from the perspective of potential investors?

Romp around many charlatans of the matter actually have no idea (push-columns, rushing into this, what’s currently on the market)? Unfortunately, there are black sheep in every industry. It certainly makes sense to find out exactly and above all, the costs can be expected for an investment of over 10 years. It is often cheaper to pay a few percent at the beginning to press for more and ongoing costs. Especially when storage costs are frightening models that cause within 5 years, considerable cost.

BE: Mr. Maassen, thank you for your time!

Source: http://www.foonds.com