There is good news for investors looking to capitalise on the highly valued Technology Metals market as Electio Invest expands its current portfolio of Rare Earth Metal (REM) and Industrial Mineral offerings in Middle East & Africa.
Commodity Investment Group, Electio-Invest, have announced the inclusion of antimony and graphite into their product portfolio fold, adding two standalone products as alternatives to, or in combination with, the existing REM baskets.
These baskets include the composite of rare earth metals vital to specific industries, such as Renewable Energy, Defence, Smartphone and Technology.
According to Electio-Invest Company Director, Ian McGregor, these are investments in physical commodities as opposed to stock options, offering global liquidity and protection against the volatile stock markets that are influenced by many factors.
Says McGregor, “The Technology Metals market is driven by supply and demand, and demand is expected to increase for a number of years to come.”
Demand for Rare Earth or Technology Metals (the composite of metals used in the production of high tech devices and engineered systems), has been fuelled by a robust global appetite for their manufacture in countless applications – from computers to smart phones and hybrid cars to wind turbines.
Global supplies of Rare Earth’s have been squeezed by China’s ongoing efforts to regulate its industry and tighten the reigns on its domestic production and reserves.
Because China has monopolised 95% of global output to date, Western countries are clambering for supplies until sufficient investment in extraction and processing plants are operational in North America and other parts of the developed and developing world, leading to wider distribution of REMs.
Until recently there were only 3 ways investors could profit from the technology metals sector, and these channels included exchange-traded funds, hedge funds or stock acquisition in mining companies.
Now investors can buy, hold and sell metals at their discretion through the likes of niche investment companies such as Electio-Invest.
“We are now in a position to offer clients more diversification in terms of alternative investments. There are many different choices out there when it comes to alternative investments, and Electio Invest prides itself on being able to search for and research the finest of these to achieve healthy returns for our clients,” says Mc Gregor.
By including graphite and antimony in Electio’s offering, astute investors will look to the supply issues that have elevated the demand for and value of these products, with antimony being the frontrunner.
Over the last decade, the price of antimony has risen a staggering 700 per cent in response to China’s tightened regulations and reduced Tech Metal export quotas. The same conditions apply to graphite’s threefold rise in value since 2005.
Amorphous and lump graphite is an industrial mineral, traditionally used in the manufacture of steel, brake linings, gaskets and refractories, while the flake variant builds the fuel cells, solar panels, smartphones, laptops and litihium-ion batteries that represent the technologies of the future.
Like rare earths and graphite, most antimony is mined in China, specifically Hunan province where the world’s largest deposits are found. It is estimated that global antimony reserves total 1.83 million, with China leading the way ahead of Russia, South Africa, Tajikistan and Bolivia.
Television tubes, lead acid batteries and fire retardants are made from antimony. And future innovation will also be bolstered by its deployment in phase-change memory used for transfer speeds in computer applications.
With 2014 set to be testing time for most economies, electio alternative investments will offer real options for investors to hedge their exposure to financial markets.
Says McGregor, “REM and technology metals offer low to medium risk investments, best suited to a long-term position for wealth creation.”
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