Rare Earths AG in a Cash. interview: Why €10 million is far too little

To date, these critical commodities have been scarcely investable for major investors, as they are not listed on the stock exchange due to low trading volumes. Oil, gold, silver, or copper are mass markets with billions in daily turnover—by contrast, the rare earths market is small, manageable, and yet indispensable for high-tech, the energy transition, and defense.

With SEAG, Europe now has its first regulated security for physically backed critical commodities—equipped with its own ISIN. This makes access easier for institutional investors, for whom an entry from €500,000 is recommended. The concept is deliberately simple: “Long only”—buy now, hold for five years, then sell.

“The market for technology metals and rare earths is currently the most exciting—and will remain so over the next few years,” says Kroll. Looking at the past three years, investors could have achieved returns of 100% to 160%. An additional price driver: In the US, minimum prices for rare earths are being discussed that are around twice as high as current purchase prices in China. “Those who buy now are buying at half price—and will benefit when China no longer feels pressure to keep prices down.”

In retrospect, Kroll acknowledges that the first tranche of €10 million was sized too small—given sharply rising demand. A second tranche of a further €10 million is already being planned. In addition, future products are intended not only to invest in metals, but also to secure supply guarantees for industry—an additional strategic component.