FAQ

FAQ

Industrial raw materials 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

"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.

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.

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

Our metals are not traded on the stock exchange, so there are no public trading centres as there are for shares and funds. Customers receive a safe custody account for their tangible assets at the METLOCK GmbH provides a quarterly warehouse logistics cost statement, which serves as an indicator of value development. As the actual value of your raw materials is only determined at the time of sale, concrete statements in this regard can only be made in the context of a repurchase offer.
You can find an up-to-date overview of the rough price trends for raw materials on our website.

In our TRADIUM Newsletter our experts regularly inform you about price and market developments as well as new areas of application for your tangible assets. Register here. You can also read our market analyses in the TRADIUM blog "Market insight" to read more. 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. Feel free to listen in. You can also find us on Instagram and LinkedIn.
The news portal rohstoff.net provides daily news and background reports on coveted industrial raw materials.

Purchase of industrial raw materials

You can view our range of raw materials for private customers on our Product page view.

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 industrial sectors 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 private customers the purchase of selected industrial raw materials as tangible assets to diversify their portfolios.

Four important aspects prevent your material assets from being in conflict:

  • 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.
  • TRADIUM GmbH's industrial customer business means that private customers 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 unbroken transparency from TRADIUM along the supply chain and annual confirmation that no conflict materials are being supplied.
  • TRADIUM fulfils the requirements of the EU regulation on due diligence.

A purchase of tangible assets from TRADIUM is possible from a mid-five-figure amount. For lower amounts, savings plans or other investment models, we will be happy to recommend one of our long-standing sales partners.Request a quote now

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 at least 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

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.

Your 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 private customers storage space with the security level of a bank. Your advantage: As long as the tangible assets remain in the bonded warehouse, there are no costs for customs clearance and VAT.
Thanks to its affiliation with TRADIUM GmbH, METLOCK GmbH is an expert in the storage of industrial raw materials. Your material assets are therefore in the best hands there.

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 your depot on the respective reporting date.

Your tangible assets are stored at bank level and are also insured against theft and fire.

Tangible assets are usually stored in collective custody, also known as fractional custody. In this case, a buyer owns the fraction of the total quantity of a stored commodity. Individual custody is also possible on request. With individual storage, the purchased quantities are removed from a batch or packaging unit and separated. The raw material is then labelled with a new batch number and its own certificate of analysis. The owner of the tangible asset is given a separate, dedicated area in the METLOCK bonded warehouse. Depending on requirements, this can be a safe, a pallet cage or a simple storage space.
The disadvantage of individual custody is that it makes liquidation more difficult if the quantities of raw materials are too small to cover requests from industrial customers. In the case of collective custody, the asset is sold as part of a larger total quantity and thus finds buyers more easily.

Due to the high security requirements, we can only offer a viewing of your property in the bunker to a limited extent. If you would like a personal inspection, we will be happy to inform you about the requirements. 

The holdings are inspected and verified annually by an independent auditor. If necessary, all private customers are free to commission an auditor to certify their personal holdings at their own expense, taking into account the administrative costs.

Sale of industrial raw materials

As an industrial supplier, TRADIUM GmbH has a good insight into the demand expectations of numerous sectors, so that the tangible assets you purchase are very likely to find a buyer. 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 industry.

If you wish to resell the raw materials, TRADIUM GmbH is available as a potential buyer, but this is always dependent on the respective economic and market situation. You are free to resell to third parties at any time.

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 buy-back offer if required.

Terms

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.

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.

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".

To the Precious metals include the metals of the platinum group alongside gold and silver. 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.