Many Hemispheres readers are already heavily invested in gold and silver. They are looking for diversification but would like to stay in hard assets and even more specifically, metals. Fortunately, there is a new, valuable asset class that you can physically own in your own name, (trust or LLC) touch and see, take delivery of, or store off-shore in allocated, segregated fashion, reselling directly into the industrial market when you liquidate or when the stockpile is sold in its entirety at full mature value.
These are the rare and strategic metals that are now used in 80% of all products today.
“The Secret Ingredient of almost Everything!”
By Valeria Espinoza – Hemispheres Publishing
The world is fast becoming more dependent rather than less on these rare, strategic, tech metals, so much so that they continued to go up in value even during the recent worldwide economic unpleasantness. Now, of course past performance is not necessarily a guide to the future but a series of events are unfolding that bode very well for the future for anyone participating in a stockpile of rare and strategic metals.
Furthermore this relatively new, hard asset class has some other advantages:
There is currently no clear reporting obligation. Unlike precious metals that are sensitive and are subject to various tax, treasury and anti-money-laundering controls, rare and strategic tech metals are much less sensitive. These are not financial assets that sit in an account. They are physical things that you own. You can even own them anonymously if you wish as the companies acquiring and storing them are private. You can even own pure silver & gold this way in industrial granulate form, that doesn’t class as bullion or precious metals.
Americans can hold these physical metals in an offshore Nevis LLC nestled inside a self-directed IRA in a completely IRS compliant structure. The same also applies to self-directed retirement plans in other countries.
It’s a currency diversification in that you can easily pay in one currency and cash out in another. Sales proceeds can be sent to almost any bank account, anywhere in the world.
What metals are we talking about? They are not household names but they are in almost everything in and around the house. This ranges from kitchen appliances and cutlery, TVs, flat screens, and I Pads, cell and smart phones, automobiles and even the new efficient solar panels, medicines, ointments, creams, water purification and jet engines and commercial aviation, to name just a very few of their myriad applications. The world of today cannot live without the metals of tomorrow. In fact, National Geographic in a recent 2011 article referred to them as “The Secret Ingredient of Almost Everything”.
They include such rare critical technical metals as rhenium, indium, gallium, hafnium, tantalum, tellurium and bismuth. Other strategic industrial metals include molybdenum, chromium, tungsten, cobalt and zirconium. These metals are all limited in supply or vulnerable to supply interruption, and under increasing demand.
Above all, though, we like this opportunity (rare and strategic tech metals) because it´s about owning something physical that you can touch and feel, and take possession of if you want, rather than owning questionably backed paper or following numbers on a screen. In the event of a medium or even drastic negative economic event, physical investments like this will be the only ones worth having!
Current events around the issue of rare and strategic tech metal supply and demand
In 2012 there have been two more significant events that show the importance of these metals to the world and also the trend towards a continuing problem of supply meeting demand in this sector, further driving up the values of these metals in the years to come.
Early in the year the USA, Japan and the EU issued a formal World Trade Organization (WTO) complaint against China regarding the Chinese reductions in exports of rare, strategic, industrial and tech metals like the ones we mentioned previously.
These countries need these metals to initiate and complete their strategic economic plans over the next few years. Over the past two years, China has reduced exports of these metals around 40%.
These countries and their manufacturing sectors, and military have small or no stockpiles of these crucial materials to meet their strategic needs over the next 3 to 5 years, let alone over the next 10 to 20 years.
Most tech metal experts who have studied this WTO complaint feel that China will not comply because they will argue that these governments need the materials for their high tech military applications, and that a WTO complaint cannot be filed around materials used for the military.
They further believe that if the WTO orders China to increase exports of these raw materials so that these countries can meet their strategic economic goals, China will simply refuse, as they really need most of these materials to fuel their own economic strategic plans.
Unfortunately for these countries, the WTO has no teeth, and the only enforcement of their decisions is a series of ping pong ball embargos, back and forth to try and get China to comply. I think we all know how this will turn out.
The second significant event that occurred in September of 2012 came out of Beijing in an AP, and CNN news report that China was consolidating the metals market inside China by closing all of the independent, smaller mines and refineries and smelters. They are doing this so that the Central Committee takes over complete control of this sector, can control pricing, and to eliminate a black market that has existed up until now. This will cause another, immediate 20% reduction in exports.
This is bad news for the USA, Japan, Korea, Taiwan, the EU, Sony, LG, Toshiba, Panasonic, Samsung, BMW, the US Military Industrial Complex, and all other manufacturing sectors that need these metals now. The metals that China does release to them will cost more, and they may have to locate their production facility in China, to get access to the metals.
China is not asking anything outrageous. They simply want to receive the true market value for these metals now that there are so many new applications for them in the past 10 years.
This is good news if you are a participant in a stockpile of these metals outside of China as you will reap the benefits of these increased values in the metals in the coming years.
Furthermore, demand will continue to rise for the products which use these metals as over 1 billion souls are emerging from poverty in places like China, and India and South America, and entering lower and middle class, and they will have all those products that we in the West take for granted.
In true price-inelastic form, the products that contain these metals will not go up significantly in price, stunting demand, because such trace amounts of these metals are used in each product, that manufacturers will simply absorb the increased costs of rare and strategic tech metals, in their already sizeable profit margins.
Also, if you buy a cheap Chinese knock off phone, or a real IPhone, a luxury car like Mercedes Benz or a bargain priced Korean or Chinese car, get your medicine from a private doctor or public clinic, it does not matter, as expensive and inexpensive products use relatively all the same rare metals in the same amounts.
To illustrate in numbers the expected increase in demand for some of the aforementioned metals, a February 2012 Metal Report from Deutsche Rohstoffagentur shows that production levels for indium are already not meeting demand, and will increase from 580 metric tons in 2010 to over 1,800 metric tons by 2030. Gallium production will need to increase from 180 metric tons to 600 metric tons to meet increased demand. Tantalum production will need to increase from 600 metric tons to 1400 metric tons to meet demand.
Realistically, production will not be able to increase to the necessary levels to meet this expected demand, so solutions like increased recycling and more efficient use of the metals will need to be initiated. These solutions, and especially recycling, will only further increase the values of the metals.
A “turnkey” provider of rare and strategic tech metals
Swissmetal Inc. (SMI) based in Germany, Switzerland, Italy and Panama is currently the only ¨turnkey¨ provider of rare and strategic tech metals in world. Physical ownership within allocated, segregated accounts stored at private duty free vaults in Zurich, Switzerland and Panama City, Panama.
Haines and Maassen (HM ) our metal trading partners, who have been operating in this sector sicne 1948, selected metals for this new program to be gathered in what they metaphorically referred to as ¨baskets¨ that had the best chance of increasing in value now, and in the future, with the idea being, this would be a new asset class that German citizens could exchange their devaluing paper currency in for, to hedge against inflation, and worldwide economic malaise.
The program was and is an overwhelming success, with clients now coming from countries all around the world, including an ever increasing amount from the USA to participate in the Key Industry, Tech Metal, Construction and Engineering, and Military rare and strategic metal stockpiles. Since the program began in 2009 the metals baskets have averaged 16.5% increases in value overall per year.
The media file around the original German Company is quite extensive, consisting of television and print, whereas the approach to promoting this program in the United States, for example, is done through sponsored investment conferences and symposiums primarily in the US, Canada, and Central and South America, and through newsletters like the one you are reading now.
SMI and its trading partners in Germany and Switzerland Schweizeische Metalhandel AG and HM, have over the last 5 years, developed a proven, safe and secure method to discretely preserve wealth utilizing fully allocated, segregated and securely stored offshore, rare technology-based strategic metals and precious metals.
The baskets are steadily increasing their value in the face of some very volatile financial markets and widespread economic instability. As you know, the last few months (and years actually) have been very rough times for the financial markets. As SMI regularly tells their website visitors and clients alike, SMI´s wealth preservation strategy is firstly, a safe secure and private defensive mechanism for rough times with the baskets holding and/or increasing their value very well in that regard. Once your assets are safe, it is enjoyable to also consider the significant potential for profit as well.
If you find this to be as intriguing an opportunity as we do, and believe that it is worth a closer look, then please go to the link below to get more details about how the Swissmetal Inc. programs can work for you and or your family.
Welcome to Swissmetal Inc. Rare and Strategic and Precious Metals Acquisition and Private Overseas Storage Programs.
Investing in or converting your currency into physical ownership of rare and strategic, and or precious industrial metals is a means of securing a safe harbor during times of financial crises. We are living in a time where “too big to fail” simply isn’t true, where market swings can pang a deadly knockout punch and when rounds of quantitative easing are becoming the band aid of choice in tackling sovereign debt and with it, rising inflation.
Thankfully, rare and strategic tech metals do not exist in these shadowy realms. Strategic metals are tangible, fixed assets that are not correlated to normal financial market trends. They are the essential components used across a broad spectrum of industry (over 80% of products today) and demand continues to outweigh supply. That is why at Swissmetal Inc. (SMI) our rare strategic metal baskets have returned an average of 16.5% per year since 2009.
Who is Swissmetal Inc.?
In 2009, Haines & Maassen partnered with the Swiss firm Schweizerische Metallhandels AG to provide a way for European buyers to claim their own stake in rare and strategic metals. Instead of selling metals in substantial amounts to industrial clientele, as they have been doing since 1948, this partnership splits them into smaller quantities, allowing individuals to own them physically while securely storing them in the Zurich and Panama City duty free zones.
Two years later, Schweizerische Metallhandels AG opened offices in the Americas under the name Swissmetal Inc. (SMI). Now investors all over the world have access to this market
Why Rare and Strategic Metals?
The demand for rare and strategic tech metals is vastly outweighing supply in the West. This is largely due to the fact these Rare Earth and Strategic Metals are controlled by the East! It is estimated that China controls 96% of the world’s Rare Earth & Critical Metals even though they only have 40% of the reserves. As such, they have a stranglehold on the refining process at this time.
This, along with mining and extraction difficulties, has led the West to formally recognize these shortages as shown in the studies below.
The British Geological Society Risk List 2011
US DOE Critical Metals Strategy 2011
EU 2010 Critical Materials Study
Swissmetal Inc. – Strategic Metals Platform
Swissmetal Inc. provide a platform for individuals to acquire ¨baskets¨ of rare and strategic tech metals, each with a specific industry focus. These stockpiles include the Key Industries, Energy and tech, Construction and Engineering, and our recently launched Defense Industries baskets of metals. We metaphorically refer to these as baskets, but in reality they are large stacks and containers of metals.
This platform allows individuals to convert their currency assets into rare and strategic metals, stored away in the safety and privacy of a bank level 1 security vaults in the duty and tax free Entrepot, outside Zurich, Switzerland, and with Vault Max Global in the duty free and tax free zone of Panama Pacifico, outside Panama City, Panama. When the metals are converted back into currency when the stockpiles are sold to industry, the SMI Platform will refund you into almost any bank account, in any currency, worldwide.
Daily valuations are provided through the SMI Platform.
Rare and Strategic Metals Baskets
Through an offering of rare and strategic metal baskets, each specifically weighted by strategic metals with an industry specific focus, clients can choose from strategic metals that they feel will greater enhance their chances of protecting their wealth. The values of the metal baskets are shown on the home page of SMI on a daily basis.
We currently have 4 Strategic Metals Baskets to offer our clients.
1. The Key Industries Basket of 6 rare and strategic metals ($17,620, 30.09.12)
|2kg Indium||3kg Hafnium||2kg Gallium||7kg Tellurium||8kg Tantalum||47.4kg Bismuth|
2. The Energy and Tech Basket of 3 rare and strategic metals ($6,242, 30.09.12)
|2kg Indium||3kg Hafnium||2kg Gallium|
3. The Construction and Engineering Basket of 6 strategic metals ($10,952, 30.09.12)
|4kg Tantalum||20kg Molybdenum||20kg Chromium||20kg Cobalt||20kg Zirconium||20kg Tungsten|
4. The Defense and Aviation Basket of 5 rare and strategic metals ($23,356, 30.09.12)
|1kg Rhenium||5kg Tantalum||5kg Gallium||20kg Tungsten|
Gold and Silver
SMI also offers Gold and Silver, both in bullion and industrial granules. Both options are 9999 pure, and from certified refiners. The granules are classified as industrial metals, not precious metals, and this is a benefit when it comes to reporting requirements.
As both our industrial metals and precious metals are stored in a direct controlled fashion for our clients, it is not reportable.
Supercharge your IRA or 401k
By utilizing an Offshore Nevis LLC, nestled in a self-directed IRA with a US certified custodian, you can supercharge your current, vulnerable, or underperforming IRA or 401k plan in an IRS compliant manner using SMI rare and strategic metals. In this way your IRA own the offshore LLC, and in turn the LLC own the metals. Now the IRA owns physical assets instead of paper cash, and is based offshore for your protection.
Tax Efficient Gift
Use Strategic Metals in bestowing a gift to your children, grandchildren or friends by utilizing a US $13,000 (US $26,000 for married couples) tax efficient gift. If you set up a trust, you can gift $5 million for single person, $10 million for a married couple, but this is only in 2012. Please consult your family estate planner for more details.
To purchase Metals or to discuss your options further, you can call SMI Toll Free: directly between 9-5 Central time or please fill in your full information to be contacted by an SMI agent.