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.