Investing in iridium metal driver#

Finally, a clear risk in this space is exposure to China. Additionally, many governments consider these metals critical to their economic prosperity and will act to position and defend their supply chains. This segment of the market has exhibited a high level of volatility, historically. Equity market risk is also prevalent as companies navigate inflationary costs, geopolitical events, and market volatility. As such, the metals and related companies can be cyclical. GMET FUND PAGE What are the risks of investing in these metals?Īs commodities, green metals are heavily influenced by supply and demand trends. “ Drill down on Green Metals and Rare Earth Elements” provides a closer look at how investors can gain exposure to metals and mining companies in this space. GMET provides global exposure to companies involved in producing, refining, and recycling green metals.

Their share price is influenced by the supply and demand dynamics that also influence metals prices. Another way to access this space is through equity investments in the companies that are involved in the extraction, processing, and recycling of these metals. Futures exposure can be complicated and comes with a set of risks unique to futures’ market structure, such as contango and backwardation. Physical investment in these metals is not realistic, but there are futures contracts that offer derivative exposure to a subset of these metals (and compounds) such as copper, nickel, lithium hydroxide, and cobalt. How can investors access an investment in these metals? Source: World Bank: Minerals for Climate Action, Testing, Inspection and Certification Council (TIC), Joint Research Center (JRC). Metals Required in Decarbonizing Applications Does investing in GMET generate Schedule K-1 tax statements?.What metals exposure is prevalent in GMET?.How does GMET obtain exposure to Chinese companies?.How prominent is China’s role in the green metals market?.What are the risks of investing in these metals?.How can investors access an investment in these metals?.

This blog is intended to answer some frequently asked questions on green metals and VanEck’s Green Metals ETF. VanEck Green Metals ETF (GMET) seeks to track as closely as possible, before fees and expenses, the price and yield performance of the MVIS ® Global Clean-Tech Metals Index (MVGMETTR), which is intended to track the performance of companies involved in the production, refining, processing, and recycling of green metals. But few clear-cut public investment opportunities to access upstream exposure to these metals exist. This dynamic has driven increased investor interest in the companies extracting and processing green metals.

Investing in iridium metal driver#

The global transition from fossil fuels to a low carbon economy is the primary driver of demand, while the difficulty of and environmental hurdles related to the development of new mining projects are a major factor limiting supply. Green metals have taken center stage in recent years as demand for many has increased exponentially, while supply has remained thin.