Security with Strategic Metals

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Most of us discover the fascinating world of metals as early as childhood, namely when we hear of treasure hunters retrieving ancient treasures from the ocean. With a lot of patience and perseverance sunken shipwrecks are hunted down, because often treasures of immeasurable worth lie dormant in their holds, treasures that have not lost in value, even after many centuries. In 2007, for example, the flagship HMS Sussex, which sank in 1694 off the Southern coast of Spain, was retrieved. One million pounds sterling in gold and silver were found on board, with a current value of around four billion Euros. I don’t know of any paper value that survived a similar period of time remaining intact. Metals are one of the most important requirements of all of the world’s industrial manufacturing sectors. The German economy, for example, is strongly affected by the huge increase in prices, as well as by the supply shortages of some metal commodities. There is also the fact of the dramatic operations in the global market of economically booming countries such as, for example, China. China quickly and unbureaucratically secures all available commodities in commodity-producing countries, to further advance the strong economic growth within its own country. The demand, especially for metallic commodities, seems to be almost immeasurably high. This is one of the reasons for the in average 50–80 percent price increases for commodities in recent years. The so-called BRIC countries currently require very large amounts of metals for the development of their infrastructure and industry. China is now already the largest consumer of many metals. Experts estimate that China alone requires around one quarter of the global supply of industrial metals for its further economic development. One of the reasons for the current bottlenecks, leading to rising prices in the market, is the fact that in the past the willingness to invest in the opening of new mines was minimal. This is one of the main causes for the current limited supply of industrially urgently needed metals. As the development of new deposits will still take many years, it is unlikely that the mining companies will be able to increase their supplies in the short term. The supply shortage, bottlenecks and also the current turmoil in the global financial markets could further increase the metal prices. The effects, including the effects on the German industry, are unforeseeable. The current developments in the financial markets, with their unpredictable impact on the purchasing power of our financial assets, should lead us to change our views. We all live in a bloated financial system, which is out of proportion to the actual values. The actual material value of most asset classes is mostly already far below the real market value. Speculation, greed and the pursuit of even higher interest rates will determine the development of these asset classes. History has shown that the possession of physical metals over generations has led people to prosperity and security. This will not change in the future. We invite you to be an owner of something genuine yourself. Welcome to the world of real values.