Rare earth metals (REM) include seventeen elements, each having unique characteristics. Also known as rare earth elements, these are used in everyday products like cell phones, computer memory chips, batteries, etc. REMs are vital for the military, too, as their communication equipment and weapons incorporate them.
These metals are commodities also impacted by economic cycles. For active traders like you, specialists like Indigo Precious Metals offer viable trading opportunities. Owing to their extensive geographical distribution, extracting and processing REMs is challenging. The high costs involved add to their value.
Investing in Rare Earth Metals
Rare earth metals mining is a tough industry, given that extracting even a small amount generates excess harmful waste. The chemical properties of these metals make it difficult to purify them.
REMs are classified as rare because you never find them in high concentrations. Moreover, they mostly contain traces of each other besides radioactive elements.
Benefits of investing in REMs:
Sharp Growth in Demand Predicted
It is estimated that over the upcoming decade, there will be a sharp growth in REM demand. Currently, too, their demand and supply are converging, resulting in a significant boost in price.
Forecasts indicate that by 2026, the REM market will surge to USD 9.6 billion from the present-day USD 5.3 billion. It is no wonder then that industry experts like Indigo Precious Metalstrade in this domain. Including REMs in your investment portfolio is, without a doubt, going to make the latter more valuable.
Because of their special properties, many end-use industries demand REMs for their industrial applications. These applications include catalysts, polishing, permanent magnets, phosphors, metal alloys, and glass additives. Rare earth magnets are an integral component while manufacturing wind turbines and hybrid electric vehicles.
Neodymium oxide, for instance, is a rare earth metal that produces magnets found in popular consumer electronics and most modern vehicles. Besides being among the world’s strongest magnets, what drives its market is an increase in clean energy application.
With recycling, a secondary source of REM supply is made possible. This greener alternative to mining REMs minimizes their harmful effect on the environment. It limits the toxins and waste entering precious water resources.
The strong presence of several regional and global players makes the REM market relatively consolidated. Cost-efficient production becomes a reality as these players rely on well-established distribution and procurement networks. Indirectly you stand to benefit from the price these valuable metals command in the trading market.
Primarily, the two factors driving the heavy and light REM market are its valuable contribution to end-use industries and an increase in clean energy demand. Both these aspects will continue to favorably shape the future of REMs, known to provide an enormous investment opportunity.
Lean on a reputed company that does not levy tax on your REM investment, provides secure vaulting, and updates you on pricing in real-time. Should you need professional analysis and expert advice before proceeding with your purchase or sale, such industry specialists come to your aid.