This is what customers want to know about buying real assets.
Industrial raw materials as a tangible asset
Why are strategic industrial raw materials suitable as a tangible asset?
The formula for coveted industrial raw materials as tangible assets is as follows:
Low availability + rising demand = good opportunities for profits
Why is the supply of industrial raw materials critical?
"Rising demand and a strong geographical concentration of extraction and processing are turning many industrial raw materials into critical resources. China, for example, has a dominant market position in the rare earths sector. Strategic metals are also generally extracted as a by-product of other raw materials, from which they have to be separated in complex and therefore expensive processes. Primary gallium, for example, is extracted during the production of aluminium. The annual availability of gallium is therefore dependent on the demand for aluminium but also on the availability of recycling material.
Why is the demand for industrial raw materials increasing?
Strategic metals are of crucial importance for many growth markets. These growth markets include future technologies that are becoming increasingly widespread due to the global population growth, emerging economies and ambitious national climate targets. As a result, the demand for raw materials is also increasing in a number of industrial sectors.
In which areas of application are industrial raw materials processed?
Strategic metals are essential for the growth markets of renewable energies, digitalisation and mobility. Demand is therefore likely to be stabilised and multiplied by multiple sectors, such as wind power and photovoltaics, computer, information and communication technology, aviation, hydrogen, e-mobility and medical technology.A precise overview of which application areas are particularly relevant for which raw material can be found in the product descriptions of the individual raw materials, together with meaningful market forecasts.
Stay informed about the market and prices
Where can the price development of strategic metals be tracked?
Our metals are not traded on the stock exchange, so there are no public trading centres as there are for shares and funds. The price trends for commodities can be found on our website.
Does TRADIUM provide further market information?
In the TRADIUM Newsletter our experts regularly inform you about price and market developments as well as new areas of application for your tangible assets. >>Login<<. We regularly provide further information on the market in the TRADIUM blog "Market insight". Detailed interviews on current debates can be found in our podcast "Solid as a rock. The commodity talk." This is available on all popular streaming services. TRADIUM can of course also be found on Instagram and LinkedIn.
Daily news and background reports on coveted industrial raw materials can be found on the news portal rohstoff.net.
Purchase of industrial raw materials
Which commodities are available as tangible assets from TRADIUM?
You can view the range of tangible assets on our Product page view.
Who is TRADIUM GmbH?
TRADIUM GmbH is an owner-managed company in Frankfurt am Main. TRADIUM has been successfully supplying customers from industry and trade internationally since 1999. TRADIUM GmbH's customers come from a wide range of innovative industries such as the electronics industry, the automotive industry, the glass and ceramics industry and dental technology. In addition to its close co-operation with industry, TRADIUM offers selected raw materials to complement its portfolio as tangible assets.
How does TRADIUM ensure that no conflict minerals enter circulation?
Three important aspects prevent our raw materials from being conflict materials:
- Conflict materials are generally understood to be tin, tantalum, tungsten and gold. Of the raw materials sold by TRADIUM as tangible assets, only gold is therefore potentially a conflict material. However, TRADIUM does not actually sell any conflict materials, as TRADIUM GmbH rejects trade in conflict materials for ethical reasons.
- Thanks to TRADIUM GmbH's industrial client business, tangible asset clients can be sure that no conflict materials are acquired as part of the tangible asset portfolio. TRADIUM GmbH's products are purchased for industry and sold on to them. Accordingly, the raw materials must fulfil the requirements of the industry. These requirements demand complete transparency from TRADIUM along the supply chain and annual confirmation that no conflict materials are supplied.
- TRADIUM fulfils the requirements of the EU regulation on due diligence.
What holding period makes sense?
The purchase of industrial raw materials as a tangible asset should be approached with a medium to long investment horizon. For example, many tax advantages only take effect after a holding period of one year. Other positive effects of a tangible asset purchase also only take effect over a longer period of time, such as inflation protection.
Storage of industrial raw materials
How long can the metals be stored?
Technology metals and precious metals do not lose their quality when exposed to air. You can buy rare earths directly from TRADIUM as oxides, the optimal storage form. If stored properly, your material assets can be kept for an unlimited period of time.
Where can my raw materials be stored safely?
Raw materials can be purchased from TRADIUM's partner company, the METLOCK GmbHare stored in a high-security bunker in Frankfurt am Main. METLOCK GmbH manages a bonded warehouse that offers storage space with the security level of a bank. One advantage: as long as the tangible assets remain in the bonded warehouse, there are no costs for customs clearance and VAT. Thanks to its many years of experience, METLOCK GmbH is an expert in the storage of industrial raw materials.
What does storage at METLOCK cost?
The costs for logistics, including warehousing, administration and insurance, amount to a maximum of two per cent per year. The calculation basis for this is the current value of all goods in a depot on the respective reporting date.
Under what security regulations are tangible assets stored?
Like all goods in the METLOCK GmbH warehouse, tangible assets are stored at bank level and are also insured against theft and fire.
Do customers have access to the tangible assets at all times?
Due to the high security requirements, a tour of the bunker can only be offered to a limited extent. We will be happy to inform you about the requirements for a personal tour of the bunker.
How is it ensured that the raw materials are actually stored at METLOCK?
The inventories are inspected and verified annually by an independent auditor. If required, all customers are free to commission an auditor to certify the respective inventories at their own expense and taking into account the administrative costs.
Sale of industrial raw materials
How is it ensured that the tangible assets can be easily liquidated?
As an industrial supplier, TRADIUM GmbH has a good insight into the demand expectations of numerous industries, so that a buyer can be found for tangible assets with great reliability. Batch numbers and certificates of analysis are stored at TRADIUM for all raw materials. The packaging units remain in their original condition. This simplifies sales to the industry.
Is repurchase guaranteed?
TRADIUM GmbH is available as a potential buyer for the resale of raw materials, but this always depends on the respective economic and market situation. Resale to third parties is also an option.
What discounts can be expected in the event of a sell-back?
There is no fixed discount. Rather, this depends on the respective economic situation and demand situation on the part of the customer. TRADIUM will be happy to submit a repurchase offer if required.
Terms
What are strategic metals?
Strategic metals are among the raw materials that are of crucial importance for a country's economy, technological development and national security. Their strategic importance results from their scarcity, their indispensability for certain industries and the fact that supply is often dominated by a few countries or companies. Due to their limited availability and importance, they are not only an important factor in global politics, but also an attractive tangible asset that can increase in value.
What are technology metals?
Technology metals owe their name to their relevance for technological applications. Gallium, for example, is found in high-quality computer chips and indium is an indispensable component of touch displays. There are 27 technology metals in total.
What are rare earths?
Scientifically speaking, the rare earths comprise the 15 lanthanides as well as the elements scandium and yttrium, which belong to the 3rd group of the periodic table. In total, there are 17 elements that are designated as rare earths.
The term "rare earths" comes from the early history of their discovery and extraction. "Rare" was chosen because it was originally assumed that these metals were only found in very small quantities. In fact, some of them, such as cerium, are comparatively common. Others, however, such as thulium or lutetium, are indeed rare. The term "earths" comes from the fact that these metals were initially only isolated from minerals in the form of their oxides. In early chemistry, such oxides were referred to as "earths".
What are precious metals?
In addition to gold and silver, precious metals include the metals of the platinum group. These include the elements iridium, osmium, palladium, rhodium and ruthenium as well as the eponymous platinum. They are characterised by special physical and chemical properties that make them interesting for a wide range of industrial applications: Gold, for example, with its very high electrical conductivity, or platinum and palladium as catalysts for chemical reactions.
Understanding tangible assets
Basic information on strategic commodities as tangible assets.
