Strategic Metals Are Money
Keep in mind that oil was not just a commodity. In the phrase of one tycoon, “oil is money.” Increasingly, “strategic metals are money.” The battle to secure these vital resources will undoubtedly make some investors very wealthy.
A key reason to invest in these rare strategic metals is that demand for them will increase as demand for technology and consumer tech products increase. This is why these metals are sometimes referred to as technology metals. The increasing demand for products made with these metals by a rising global middle-class is also a very favorable long-term trend. Investing in these metals is a very effective back door to capturing the “catch up’ growth of emerging and frontier markets.
The military angle is also important since defense establishments around the world are increasingly dependent on technology metals for communications, drones, missile technology, weapons guidance and battlefield technology. This is another reason China is holding on to more of its production.
The green revolution is another trend propelling demand for rare strategic metals. Hybrid car batteries, solar cells and wind turbines are but a few of cleaner technologies using sizable amounts of these metals.
Investing in rare strategic metals offers investors some significant advantages:
• It’s critical to global industry/technology.
• They are hard, tangible assets that are transparent and secure a store of value.
• Metals can be placed in bonded, segregated accounts in Swiss or Panama vaults.
• Investors have a choice of four different baskets of rare strategic metals.
• There is no currency risk during the holding time of metals and proceeds can be taken in any currency.
• There are opportunities for custom baskets or concentrated positions.
• It’s a non-correlated investment that provides an effective hedge on inflation and instability.
Individual investors have already poured $350 million into these baskets of strategic metals. These baskets have been up an average of 10 percent to 12 percent annually over the past few years. Consider building and protecting wealth by learning about how to blend in some rare strategic metals into your global portfolio.
Carlton Delfeld is managing director of Chartwell Partners, an alternative asset advisory firm, and vice chairman of the Pacific Economic Club. He can be contacted at [email protected].