This informative, recorded webinar explains how to invest in strategic metals, also known as rare earth elements. You’ll learn what they are, why they’re important, and how to invest using self-directed IRAs or personal funds.
We encourage you to expand your knowledge and listen to this recorded webinar or read the recap below to discover if investing in strategic metals is a good fit for you.
- Scott Maurer, director of business development at Advanta IRA
- Louis O’Connor, founder and principal of Strategic Metals Invest
Range of topics on investing in strategic metals
- Introduction to strategic metals and rare earth elements
- Importance of strategic metals in various industries
- Checkbook control method for holding assets in self-directed IRAs
- Investing in strategic metals through Advanta IRA and Strategic Metals Invest
- Storage and liquidation of strategic metals
3 Takeaways on How to Invest in Strategic Metals
1: Strategic metals are an alternative investment with the potential for high returns.
Lewis O’Connor explained how to invest in strategic metals. He relayed his feeling that this market is important because strategic metals are used in many industries. He said these metals, also known as rare earth elements, have a wide range of applications in technology, aerospace, and renewable energy.
“Strategic metals differ from base metals like copper, iron, lead, and zinc, in that the availability of those metals is relatively abundant,” O’Connor explained. He pointed out that demand for strategic metals has been increasing rapidly, with limited availability and supply. This supply-demand disparity has the potential to drive up the value of these metals as investments.
O’Connor also mentioned that investing in strategic metals can provide a hedge against inflation and market fluctuations, as their value is based on supply and demand rather than stock market performance. He emphasized the importance of due diligence when considering an investment in strategic metals and working with trusted industry suppliers.
2. Checkbook control can be a useful method to invest using a self-directed IRA.
Scott Maurer discussed the concept of using a checkbook control IRA as a method for investing in alternative assets like strategic metals. This structure involves setting up a limited liability company (LLC) owned by the IRA, giving the investor greater control and flexibility over their investments.
Maurer explained how to set up a new LLC owned by an IRA. The IRA owner is acting manager of the LLC and opens a bank account in the LLC’s name. Once the bank account is established, the account owner tells Advanta IRA to send cash from the IRA to the bank account. This investing structure allows the investor to make purchases and manage their investments more quickly and cost-effectively.
Maurer noted that while checkbook control can offer reduced fees and more control, it may not be suitable for all investors. It is important to consult with a financial advisor or knowledgeable IRA custodian before making any investment decisions.
3. Geopolitical risks and supply-chain dynamics affect the strategic metals market.
During the webinar, O’Connor addressed the geopolitical risks and supply-chain dynamics that can impact the strategic metals market. In his opinion, “China currently dominates the production and refining of rare earth metals, controlling around 80 percent of global supply. This concentration of supply in one country can create risks for investors, as well as opportunities for growth in other regions.”
O’Connor also expressed his opinion, stating, “The next Cold War, it won’t be an arms race, it’ll be a superconductor race,” noting the increasing importance of these metals in modern technology and military applications. He also mentioned the growing demand for strategic metals in the renewable energy sector as many countries want to reduce dependence on China for these critical materials.
O’Connor advised investors to be aware of these geopolitical and supply-chain factors when considering an investment in strategic metals and to conduct thorough due diligence before making any investment decisions.
Key Quotes from Webinar Speakers on How to Invest in Strategic Metals
- “Strategic metals have more of an intrinsic value as opposed to gold, which has more of an extrinsic value.”
- “Rare earth elements are the backbone of manufacturing in the 21st century.”
- “Demand for energy transition metals will not peak until 2030.”
- “The next Cold War, it won’t be an arms race, it’ll be a superconductor race.”
- “When buying strategic metals, think of liquidation. Who are you going to sell them to?”
Recap of Webinar Insights
- Strategic metals are critical to many industries, including aviation, nuclear reactors, medical devices, defense, and renewable energy.
- Demand for strategic metals far outstrips supply, making them an interesting investment opportunity.
- Strategic metals can be held in self-directed IRAs with checkbook control, allowing for more control and the potential of reduced fees.
- Purchasing strategic metals from a trusted global dealer and storing them in a secure facility is essential for maintaining a chain of custody, making sure you can liquidate the metals when needed.
- Investors should be aware of the geopolitical risks associated with strategic metals, especially considering the dominance of China in the market.
Questions? Contact Advanta IRA
If you have questions about this webinar or would like to learn more about investing with a self-directed account, please contact Advanta IRA today.
Find additional recorded webinars and informative videos the Video Library on our website.
About Our Guest Speaker
Louis O’Connor of Strategic Metals Invest
Louis O’Connor is the founder and principal of Strategic Metals Invest, which is currently the only industry supplier in the world to offer private investors the option to purchase and profit from owning strategic metals. Strategic metals have outperformed gold and S&P500 consistently for the past five years. Visit the Strategic Metals Invest website to learn more.
The topics introduced in this webinar are for educational purposes only. Advanta IRA does not endorse, sell, or give advice on investments, investors, or investment firms and the like. The opinions of guest speakers are their own, in whole or in part, and have not been verified as factual by Advanta IRA or its representatives. Please consult with the appropriate professional for legal, tax, and investing advice.