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Why Rare Strategic Metals for Asset Protection?

Over the last few years there has been a flurry of news reports discussing how important the rare earth metals are to the world economy and technology of today. We have heard how China controls over 95% of the production of the rare earth metals. The rare strategic metals are a group of metals also vital to the world economy that do not make it to the headlines because they are a much smaller market and most are not traded on the LME, (London Metals Exchange). This market is quietly gaining attention among private investors.

Similar to the rare earth metals, rare strategic metals are 95% or more controlled by China. In the 1990´s China made the decision to focus on the metals, and quickly put many mines out of business throughout the world. In 1992 Deng Xiaoping, President of China said, ¨The Middle East has its oil, China has rare earth metals¨. In 2010-2011 China restricted exports of these rare strategic metals by 70%. The Chinese have decided that they no longer need to export the metals. The demand for rare strategic metals within China´s borders are enough to use up 100% of all metals produced. China can now tell companies to produce their high tech products in China with low priced local metals or risk being cut off from metals by producing their products in other countries.

The rare strategic metals are a very inelastic group of metals. These metals are mined primarily as a bi-product of other metals like copper and zinc. This makes it very difficult to increase the amount of metals mined. It is not profitable for mining companies to open mines for the sole purpose of mining these relatively low profit metals as far as mining is concerned.

Demand for these metals is growing exponentially. Smart phone sales, solar power, LCD screens, national defense, Apple iPads, aviation, hybrid vehicles and nuclear energy are all using these metals. National Geographic calls these elements, ¨The Secret Ingredient of almost Everything¨.

The convergence of growing demand and restriction of exports out of China has produced an opportunity of grand proportions for people who see the future use of technology and alternative energy growing. One company out of Germany stepped up and saw the trend. Schweizerische Mettallhandels and its partner for the America´s Swiss Metal Assets saw an opportunity to assist forward thinking clients in setting aside some of these rare strategic metals in their own portfolios.

Swiss Metal Assets has designed the product around small portions of the metals so that most clients can afford to enter the rare strategic metal market. Previously only large companies or institutional investors could afford entry in to this little known market. The metals are put in, ¨Baskets¨, of metals used in certain industries. Swiss Metal Assets purchases the metals from Haines and Maassen a metals trader who has been in business since 1948 supplying German companies with metals.

  1. The Key Industries Basket contains 6 metals
  2. The Solar and Energy Basket contains 3 metals
  3. The Construction and Engineering Basket contains 6 metals
  4. The Defense Basket contains 5 metals
  5. Gold
  6. Silver

The process of storing these rare strategic metals for your portfolio is relatively simple.

  1. Buyer chooses what baskets of metals to purchase.
  2. Basket is filled by, Haines and Maassen in Germany.
  3. Baskets are transported to Switzerland to be added to the vault in the tax free zone.
  4. Buyer decides to sell.
  5. Baskets are liquidated through Haines and Maassen free of Swiss taxes.
  6. Funds are transferred into preferred currency/bank of the seller.

This product was designed to assist in sheltering client assets from the uncertainty of the world currency and financial markets. The team at Swiss Metal Assets can also set up an IRA account for interested parties. If this is something that interests you please contact the team at Swiss Metal Assets.

By: Randy Hilarski - The Rare Metals Guy

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