Rare Earths as a Physical Asset
Purchasing rare earths is an excellent alternative for an asset portfolio. Rare earths as a physical asset come with decisive advantages, which contrasts with equity funds or conventional investment metals such as gold and silver:
High demand – Scarce availability:
The raw materials are processed in most technological developments. Many emerging countries are slowly developing into industrialized countries. This is increasing technology consumption there, furthering the demand for rare earths. The world population is also growing, growing the number of buyers of many technology products. However, the availability of rare earths is limited. Mining is costly, and the deposits can be mined only economically in a few places. Similarly, most rare earths are only mined abroad, and their availability depends on international trade policy.
Crisis and inflation protection:
Rare earths are physical assets and belong to the buyers physically and tangibly. Rare earths are not traded on the stock exchange. This asset is, therefore, free from non-transparent speculation. As a tangible asset, rare earth prices are determined by supply and demand and are as such crisis and inflation-proof.
Since rare earths are not financial products, they offer numerous tax advantages. There is no value-added tax, final withholding tax or solidarity surcharge on the profit when sold. Other taxes, such as income and wealth taxes, are not deducted. After one year of holding, the sale of rare earths is also exempt from income tax.
Rare earths as a physical asset
Anyone wanting to invest in renewable energies, electromobility and many other high-tech industries should consider purchasing rare earths. Rare earths are used, among other things, in high-performance magnets for many technical applications and are, thus, in great demand. However, the annual availability of rare earths is limited because they are almost exclusively produced in China. Spontaneous shortages can sometimes occur depending on how much of the rare earths China itself needs, or does not export for other reasons.
When buying rare earths in kind, it is important to purchase them as oxides, i.e., in powder form. The industry buys rare earths mainly as oxides and then produces the rare earth metals themselves if required. This makes rare earths in powder form easier to liquidate. In addition, rare earths as oxides can be stored much better.
Purchasing from TRADIUM
TRADIUM GmbH, based in Frankfurt am Main, Germany, is the only industrial supplier that allows private customers to buy the new asset class of rare earths. We offer private buyers with competent, individual and free customer service. Our decades of knowledge of the market also increase the liquidity of the products.
Matthias Rüth founded TRADIUM GmbH in 1999. After many successful years at Degussa, he wanted to devote himself to the exciting future of strategic commodities as a commodities trader. Over 20 years of company history, the one-person business has grown into a renowned, medium-sized, owner-managed company with excellent contacts to producers and industry.
Matthias Rüth, Founder and Managing Director TRADIUM GmbH
Storage at METLOCK
Further advantages result from our cooperation with the company METLOCK GmbH. The core competence of METLOCK is the optimal storage of rare earths and technology metals at a bank security level. TRADIUM and METLOCK together thus offer a convenient, complete solution for material procurement, storage and resale. Metals in the bonded warehouse of METLOCK GmbH are also delivered exclusively to industrial customers. Therefore, no value-added tax is charged on sales. Only a storage fee is charged to buyers when purchasing technology metals and rare earths.