Germanium as a Physical Asset
Unlike conventional investment metals such as gold and silver, buyers of technology metals and rare earths benefit from several advantages at once.
Increasing Demand – Limited Availability:
Technology metals such as germanium are needed for almost all technological developments in recent years. Emerging economies such as India and China are rapidly developing into industrialized countries. As a result, technology consumption is increasing there, which in turn requires more technology metals and rare earths. The world population is also growing overall, so the number of technology buyers is also growing.
However, technology metals and rare earths are only available in limited quantities. Mining them is costly and in any case only economically viable in a few places. In addition, many technology metals come from abroad. Their availability therefore also depends on international policy.
Crisis-proof, Inflation-proof:
Technology metals and rare earths physically belong to their buyers – they are physical assets. All of them, including germanium, are not traded on the stock exchange. This means that a alternative asset such as technology metals is free from non-transparent speculation. Rare earth prices are determined solely by supply and demand. They are therefore crisis- and inflation-proof.
Tax Advantages:
Technology metals and rare earths are not financial products, so they offer many tax advantages. After one year of holding, there is no income tax on the sale. And no value added tax, final withholding tax or solidarity surcharge is due on the profit. Income tax or wealth tax are not levied either.
Increasing Demand – Limited Availability:
Technology metals such as germanium are needed for almost all technological developments in recent years. Emerging economies such as India and China are rapidly developing into industrialized countries. As a result, technology consumption is increasing there, which in turn requires more technology metals and rare earths. The world population is also growing overall, so the number of technology buyers is also growing.
However, technology metals and rare earths are only available in limited quantities. Mining them is costly and in any case only economically viable in a few places. In addition, many technology metals come from abroad. Their availability therefore also depends on international policy.
Crisis-proof, Inflation-proof:
Technology metals and rare earths physically belong to their buyers – they are tangible assets. All of them, including germanium, are not traded on the stock exchange. This means that a alternative asset such as technology metals is free from non-transparent speculation. Rare earth prices are determined solely by supply and demand. They are therefore crisis- and inflation-proof.
Tax Advantages:
Technology metals and rare earths are not financial products, so they offer many tax advantages. After one year of holding, there is no income tax on the sale. And no value added tax, final withholding tax or solidarity surcharge is due on the profit. Income tax or wealth tax are not levied either.
GERMANIUM AS A PHYSICAL ASSET
Germanium is indispensable for the production of high-performance fiber optic cables. Communication technology based on fiber optics is being expanded worldwide. The Fraunhofer Institute for Systems and Innovation Research expects a significant increase in demand by 2035 due to new high-tech developments. In the case of fiber optic cable applications, demand for germanium is even expected to increase eightfold. Germanium will also continue to be needed for many other applications, such as night vision devices and thermal imaging cameras, high-performance processors, detectors for X-rays and photovoltaics.
However, germanium production is largely directly dependent on the mining of other raw materials, such as zinc and hard coal. These cannot be ramped up at will. The chances are therefore good that private buyers who physically store germanium now will be able to profit from a price increase in a few years’ time.
Buy at TRADIUM
TRADIUM GmbH from Frankfurt/Main is the only industrial supplier offering private customers the purchase of technology metals such as germanium as an physical asset. Private buyers receive competent, individual and free customer service. With its decades-long knowledge of the market, TRADIUM GmbH also ensures excellent liquidation of the products.
Matthias Rüth founded TRADIUM GmbH in 1999. After many good years at Degussa, he wanted to devote himself entirely to the exciting future of technology metals and rare earths as a commodities trader. In 25 years of company history, the one-man business has become a renowned, medium-sized company with the best contacts to industry and producers all over the world.
Matthias Rüth, Directing Manager TRADIUM GmbH
Store at METLOCK
Further advantages result from the cooperation with TRADIUM’s sister company METLOCK GmbH. METLOCK specializes in the optimal storage of technology metals and rare earths at bank security level. Thus TRADIUM and METLOCK offer a convenient solution for material procurement, storage and resale. Raw materials in the bonded warehouse of METLOCK GmbH are also delivered exclusively to industrial customers. Thus, no value added tax is incurred on the sale. Only a small annual fee has to be paid by buyers for the secure storage of their physical asset.