Precious metals are used frequently in the production of high tech products such as phones, computers and screen displays amongst many others. Some of the more specialist transition metals are often referred to as ‘tech metals’ due to their use in industry.
These metals, which include yttrium, scandium and promethium, are not as well known to investors as the more common precious metals like gold, silver and platinum. Here are some considerations about tech metals as a future investment.
At the moment, it is unlikely that the online brokers which most people use as an investment platform, like LCG, offer the ability to invest in some of the less common precious metals. This is because these metals are not as well known to the investor population, and are also incredibly difficult to mine in any great quantity.
It is likely, however, that as more attention is focused on these useful materials, investors and investment platforms will become interested in trading these on the global markets, and this demand should in turn facilitate the creation of a market for them.
One of the significant barriers to the accessibility of these rare metals is the fact that China controls approximately 95% of their production around the world, meaning that their exportation is tightly controlled through strict tariffs.
That being said, Australia, which has a powerful mining industry, also has its sights set on mining metals like scandium and vanadium, meaning the global supply could well be about to increase. This may create enough competition to get them flowing on the market, thus increasing demand further and creating even more investor interest.
Rise of Technology
More and more hi tech technology is being developed as the world strides into the future, which means it is incredibly likely that even more uses will be found for these specialist metals. This will also stimulate greater demand for them, and ultimately lead to more investment in them.
Companies which seek to mine these metals may also stand a good chance of receiving investment, given that they are so unique and full of potential as a raw material.
Ultimately, the profitability of these metals depends entirely on global investment appetite for them. As of yet, this seems to be fairly low, but there is no doubt that their usefulness to various industries speaks for itself. It makes sense, then, that these metals could well become a lucrative investment opportunity in the coming years.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.