PARIS--(BUSINESS WIRE)--The strategic metals investment company, MTL Index, is now offering to insure a proportion of their clients' position.
The strategic metals investment offered by MTL Index to individuals is a long term commitment. In order to fully profit from the boom in this market as well as its tax advantages, MTL Index advises their clients to hold their metals portfolio for between three and five years. Nevertheless, the company is aware that the vagaries of life can force clients into liquidating their portfolio earlier. Losing a job, divorce, accidents etc. can lead people to change their investment strategy, sometimes urgently.
As a result, since May, MTL Index has been offering their clients the option of insuring their metals, thus allowing them to prepare for such changes. MTL Index offers insurance for up to a maximum of 30% of the value of their portfolio. This offer means that though the value of the metals purchased may decrease by 30% between the date of purchase and the date of sale, the insurance would reimburse the difference. This offer is also available to more senior MTL Index investors.
As a consequence, the risk profile associated with strategic metals is lowered. The volatility of certain metals is no longer a problem, since the investment is insured. With this offer, MTL Index is providing a more "standardized" position, similar to the traditional products offered by banks but with a much higher yield.
Recovery in the rare earth market
Since January, metals have been enjoying the beginnings of a recovery on the rare earth market. The price of heavy rare earth elements, especially gadolinium, terbium and dysprosium either stabilized or corrected itself in the first quarter of 2015. Manufacturers are continuing to act cautiously, however, while Pekin has deliberately slowed growth in order to achieve more sustainable growth and the economic recovery in Europe and the United States has barely begun.
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