About secondary raw materials and metals in general
Secondary raw materials and metals have been known for thousands of years. Metals are a precious raw material. We can also notice that many items for everyday use are actually made of metal. Some metals have been used for thousands of years, for instance copper and iron. Metals are found in ore, which is a compound that contains a high share of metal. Only some metals, for example copper, are found in the earth’s crust as pure metals. Unfortunately, those are becoming rarer and rarer in the nature. If rare metals happen to be completely exploited some day, we will have to find a replacement for those. Otherwise people possessing them will determine their value.
Will raw materials ever run short?
The most important question that occurs to our mind is if raw materials will ever run out. Nobody knows for how much longer we will be able to exploit ores. For now, new deposits are being discovered on land and in the sea. However, the access to those is becoming more and more difficult therefore their exploitation will not be exactly cheap. So purchasing and processing raw materials will be crucial for further economic development.
Why buy secondary raw materials and metals?
Secondary raw materials and metals are still recognized as investment metals. So far, they may not have been very distinctive due to some precious metals. It is however an indisputable fact that larger central banks as well as leading global countries keep them in their reserves, they are not used up and are not disappearing; they simply provide a very important foundation for safety regardless of financial crises, market breakdowns, wars, currency switches, country annexations, country breakups, etc.
Secondary raw materials and metals have lost their status of investment metals in recent years and have become manufacturing metals. However, they provide better physical characteristics than precious metals. Even though the quantity of secondary raw materials and metals below and above ground is 1,000 times higher than that of precious metals, their deposits have been drastically reduced in size due to a highly increased industrial demand. Currently, the usage of secondary raw materials and metals exceeds their exploitation. Some deposits only contain quantities of them sufficient for a couple of years while others have already been completely exploited. The quantities of secondary raw materials and metals are therefore limited.
Which investment target pays off better – index funds, shares, mutual funds, or physical investments (in our case secondary raw materials and metals)?
Investments in secondary raw materials and metals are conservative investments aiming at enhanced safety, just in case something happens … If you invest in papers (shares) tied to indexes, it can theoretically and practically come to an unwanted event, in which case our investments will be of no use. A paper will be worth nothing. Only tangible assets that you own will count. Therefore it is our advice to purchase secondary raw materials and metals as long as you still can, and as long they are still available at relatively affordable prices.
When is it best to purchase for example copper, iron, brass, and aluminium?
The prices of secondary raw materials and metals are listed at stock exchanges and keep changing from minute to minute. In a month’s time, a year’s time, or a day the prices can fall or rise by 30%. You need to be aware that secondary raw materials and metals are not meant to be purchased in order to make a profit of 10% by selling them after two months (even though that is also possible in Slovenia). They shall be purchased in order to achieve long-term savings. Secondary raw materials and metals are only sold during crises when other investment opportunities (money, shares, real estate, etc.) have very low values, when you need money, or when you determine yourself (or with the aid of your adviser) that the time is right to sell.
How big of a property share is it reasonable to keep in secondary raw materials and metals?
Investing in secondary raw materials and metals is a conservative investment that should depend on your financial possibilities. With time, its share should however grow. Such investments are also suitable for investors who would like to avoid risks. You can invest a substantial share of your property in secondary raw materials. We suggest keeping 40–60% of your assets in secondary raw materials and metals since such an investment is secure.
It is possible to achieve savings with secondary raw materials and metals
Different savings plans have been conveniently transferred from the shoulders of the state to our shoulders. Even though we pay every possible tax and duty to the state, the money is used as it arrives. Therefore it makes a lot of sense to partially achieve savings by means of secondary raw materials and metals since they are eternal and cannot lose their value. We offer you weekly, monthly, semiannual, or annual payments, payments as a single sum or in monthly installments – whatever you choose, which means that you can opt for a savings plan tailored to your desires, which can also be paid by means of direct debit. The savings plan has no time limitations with regard to its termination, and sale of your secondary raw materials and metals.
What return can be expected in case of secondary raw materials and metals?
For secondary raw materials and metals it can be said that we are dealing with two types of return; the short-term and the long-term return.
The long-term return is limited to investments in secondary raw materials and metals lasting at least one year. It is regarded a safe investment with a guaranteed return since the price fluctuations push the price up and down several times over such a long period of time. You just need to find the right moment to sell. With regard to that, we will also provide advice and information on the best time to sell.
The short-term return is defined as investments lasting for up to one year. It a somewhat speculative investment, but still very safe since secondary raw materials and metals cannot lose their value entirely. We suggest short-term return investments to investors who are familiar with the market prices of secondary raw materials and metals, or monitor them on a daily basis.
Secondary raw materials and metals are not shares of companies that have been employing new personnel for 20 years or more, that have been expanding their production, and paying out profit. Such companies can suddenly cease their operations or stagnate. In the latter case, shareholders remain empty-handed. This is not money that will provide payouts of interest on an annual basis. But secondary raw materials and metals always keep their value.
With us, you are not investing into our company or its shares. You invest exclusively in secondary raw materials and metals that are owned by you, and you only. So you are the one to manage them as you wish and decide. Our company is merely a custodian of your secondary raw materials and metals, as well as the manager of the warehouse where your secondary raw materials and metals are stored.
How do the investments in secondary raw materials and metals complement other investments?
If you want to achieve a suitably diversified investment portfolio, secondary raw materials and metals are a staple of your investment. In times of economic and social/political crises when everything loses its value secondary raw materials and metals preserve it. This means that our portfolio is balanced.
Why is safety pointed out so extensively when talking about secondary raw materials and metals?
Everything, except earth and knowledge, can lose its entire value. Secondary raw materials and metals will always remain what they are – a natural means of exchange, industrial and trading asset that takes the most important position in manufacture due to its excessive exploitation since nothing can run without secondary raw materials and metals. As a consequence, they have a higher price.
In the history of man there has never been a currency that would not lose its value. Regardless whether it is the dinar, mark, lira, pound, dollar … Even real estate is exposed to disasters (earthquakes, floods, climate changes) and time. What about shares? Let us ask ourselves how many have remained until today ever since 1800 when the first stock exchange was founded. If secondary raw materials and metals are compared to the aforementioned investment opportunities, we can soon establish that they are virtually eternal and always tied to a certain market value regardless of the time we live in.
In what form can we buy secondary raw materials and metals?
Secondary raw materials and metals appear in various types and forms. We suggest diversifying your investments into several types of secondary raw materials and metals. Of utmost importance is liquidity. If we find ourselves in a crisis, it is better to sell 5kg of copper every month than 1,000kg of iron. In case of inflation, when money is rapidly losing its value, secondary raw materials and metals still guarantee their stable value.
Where can I sell secondary raw materials and metals if I need money?
It is best to sell them through our agency since we can sell your secondary raw materials and metals at current purchase prices any time you wish since you are the one who owns them. We guarantee all our investors the purchase and sale of secondary raw materials and metals, whereas our clients can decide by themselves when to sell.
If you do not agree with the offered price of our buyers, we can dispatch your secondary raw materials and metals in accordance with your instructions or send them EXW to our warehouse.
At what prices can I buy and sell?
With us, all prices (purchase and sale price) are tied exclusively to London Metal Exchange, so it is up to you when to buy or sell. We are always tied to the London Metal Exchange prices. You can monitor those prices at www.lme.com.
Status update
Once weekly, we provide you an update of your current status as well as the value of your secondary raw materials and metals by email, so you will always be up-to-date about their value. If you login to our website www.lmfund.com, you can monitor the value of your secondary raw materials and metals on a daily basis.
What about the storage of secondary raw materials and metals?
Due to their specific characteristics, secondary raw materials and metals need to be stored in our regulated warehouses. All our warehouses are also technically and physically monitored 24 hours daily. Additionally, all stored assets, including yours, are insured with the largest insurance company in the world, Generali.
In Slovenia, we provide a suitable warehouse in Maribor – Ruše, at the address Tovarniška cesta 51, 2342 Ruše. With advance notice, you can also personally inspect your secondary raw materials and metals during our business days.
Investments in secondary raw materials and metals
Investments in secondary raw materials and metals for your future
Successful financial advisory is closely linked to knowing the contents, access to current and accurate information, as well as to quick response to market changes. Every individual has different financial needs and we believe that we offer a quality alternative financial service.
Your first step should be to think about what share of your finances you are willing to invest, and for how long.
What is the aim of investments in secondary raw materials and metals?
In every investment, the capital diversification is important. In the last five years, the prices of secondary raw materials and metals in US dollars have risen according to the data of the ABN AMRO bank.
By investing in secondary raw materials and metals you guarantee liquidity, which means that you can always sell them at the applicable world stock exchange prices of secondary raw materials and metals.