Gold and silver are particularly popular as investments. However, investors can also invest in strategic metals as tangible assets
Gold and silver are among the classic tangible assets. They are a stable, crisis-proof and inflation-proof investment that, unlike property, can be purchased for smaller amounts. However, the two precious metals are no longer the only option when it comes to investment metals. Strategic metalswhich are needed by industry, are developing into real competitors. This refers to technology metals and rare earths, without which no key technology in the modern world, such as smartphones, renewable energies or e-mobility, would be possible. These critical industrial metals are suitable alternatives to the traditional investment forms of gold and silver.
It doesn't always have to be gold
Compared to gold and silver, strategic metals are a largely unknown form of investment. Only a few people have heard of Gallium, Hafnium, Neodymium or Terbium heard. The names of the individual technology metals and rare earth elements usually only appear in the business world. However, it is worth knowing these raw materials in private life too, as they are in no way inferior to gold and silver in terms of their properties as tangible assets.
These five reasons show why it doesn't always have to be gold when it comes to investment metals:
- What is rare is valuable: with an annual production of 3,500 tonnes, gold is a scarce resource. In comparison, however, some strategic metals are even scarcer. A maximum of just 80 tonnes of the technology metal hafnium are mined each year. The global production capacity of gallium is currently around 700 tonnes per year.
- Rising demand: Global demand for gold reached a record level in 2022, with growth according to the World Gold Council by 18 %. Demand for rare earths is expected to increase by over 40 % by 2030, reports WirtschaftsWoche. An important driver of this development is the construction of rare earth magnets, which are installed in wind turbines or electric cars.
- Interesting yield opportunities: Gold has increased in value by 60 % over the past five years. The technology metal gallium has risen by over 72 %, while the rare earth element terbium has even increased by a remarkable 456 %.
- Easy access: Just as it makes sense to buy gold and silver from a specialist dealer, it is best to turn to a specialised supplier for investments in strategic metals. They offer the raw materials in industrial quality, which is an important prerequisite for subsequent resale to buyers in the economy. In recent years, this access has become increasingly easy for private buyers. Nevertheless, there are a few things to bear in mind. We have summarised the most important points in our blog post Buy strategic metals: These seven things to consider summarised.
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Make a well-informed decision about investment metals
For investors who have already added gold and silver to their portfolio, strategic commodities offer further opportunities for diversification. Like traditional investment metals, technology metals and rare earths can offer bright prospects. However, the performance of neither gold nor strategic commodities can be reliably predicted. This is why the decision in favour of strategic metals as an alternative tangible asset always requires sound advice. This is the only way to make a well-informed decision.
