ETF or Physical – How Do YOU Invest in Technology Metals and Rare Earths?

Imagine you are sailing on the Titanic. As we know, many an iceberg lurks beneath the calm surface along its route. Given these circumstances, what would you prefer: a lifebuoy or a voucher for one? We make it even easier for you: with the voucher, you can even choose the ring’s color—provided, of course, that there are still some available on the big day.

As a physical asset, technology metals and rare earths are the lifebuoy in turbulent times. This is because they always hold value. Investors in real, physical metals enter into a pure commodities transaction, determined by supply and demand. ETFs, by contrast, like shares, also reflect the ups and downs of mining companies. Such financial products are therefore susceptible to mismanagement, whereas a physical investment is based solely on the intrinsic value of the metals. Of course, this applies not only to production-critical metals, but naturally also to gold (as we reported).

What investors appreciate about ETFs is the principle of diversification. Those who spread their risk across multiple assets can minimize it. However, this works at least as well with technology metals and rare earths. For example, if you want to invest in green hydrogen, a package of gallium, scandium, gadolinium, and various platinum metals is suitable. If you prefer the topic of national security, germanium, rhenium, hafnium, and neodymium oxide are your candidates.

However you decide: you are purchasing real commodities that will supply our industry when sold later. This reveals the most crucial advantage of a physical investment: no VAT is incurred for you in duty-free warehouses, and after a one-year holding period, your profits are also tax-free.