Turning Your Tech Addiction Into a Profit

By Jeff D. Opdyke, Editor of Profit Seeker

Dear Sovereign Investor, Weve become a gadget-happy people. The addiction started with the Crac !erry," allowing #sers to stay tethered to their email every second o$ every day. %owadays we have smartphones, tablets, &'( players, smart watches and even glasses to eep #s constantly connected to the virt#al world o$ digital data. This boom in always-on, always-connected personal technology is ma ing o#r lives easier and more e$$icient ) i$ not more distracted. Still, it is the $#t#re, and it will grow e*ponentially $rom here + which means demand will contin#e to e*plode $or all the internal components that ma e today and tomorrow possible. ,nd thats an opport#nity . I$ yo# co#ld shove yo#r smartphone, yo#r -DT., yo#r car ) even yo#r /#icer0 ) into another /#icer and whi1 them into a li2#id that yo# co#ld then analy1e, yo#d $ind ingredients li e tantal#m, galli#m, ha$ni#m, indi#m, cobalt and others. Theyre nown as strategic metals," and co#ntries and ind#stries rely on them $or everything $rom national de$ense to paint color ) and theyre $re2#ently in all o#r high-tech gadgetry. In $act, 345 o$ all man#$act#red prod#cts today #se strategic metals. Witho#t them, the world loo s a lot li e 6red 6lintstones neighborhood. !eca#se they are so cr#cial to all that we do, demand $or strategic metals increases with each passing day. ,nd the pace at which that demand increases will only grow $aster as ,sia, the &iddle 7ast, So#th ,merica and ,$rica combined spawn nearly a billion new middle-class cons#mers over the ne*t several years. In India, alone, more than (44 million people will receive electricity $or the $irst time in the coming years, opening to them the world o$ re$rigeration, microwave coo ing and T.s. ,s all these new cons#mers st#$$ their lives with prod#cts containing strategic metals, the savvy investors are st#$$ing their port$olios with the metals themselves. Meet the Metal that Melts in Your Hand 8$ the strategic metals, galli#m is already in high demand and still has room $or growth. This strategic metal is a s#perstar in the electronics ind#stry, #sed in prod#cts s#ch as $lat-panel displays, smartphones, tablets, microwave circ#its, high-speed switching circ#its and in$rared circ#its, as well as the growing 97D lighting mar et thats rapidly replacing less energy-e$$icient lighting options. :reen energy, s#ch as solar cells and thin-$ilm photovoltaic technology, also #ses galli#m. In $act, cons#mption o$ galli#m has grown by as m#ch as ;45 ann#ally over the past decade, $#eled by the e*plosive demand $or cons#mer electronics. %ow, those gadgets are ta ing o$$ in emerging and $rontier economies, and demand $or galli#m has no end in sight. ,nd yet there are relatively $ew strategic-metal prod#cers in the world that are p#mping o#t ever-increasing amo#nts o$ galli#m to meet the growing need. Instead, the ind#stry str#ggles to eep #p. Its clear that this sector contains the ind o$ s#pply-demand cr#nch that I write abo#t o$ten + and love to e*ploit as an investor. <o#ghly =45 o$ cr#de galli#m is prod#ced $rom al#min#m re$ining. 6#rthermore, ro#ghly =45 o$ galli#m prod#ction comes $rom China, tho#gh some is e*tracted in <#ssia, So#th >orea, >a1a hstan and ? raine. The Chinese government ro#tinely limits galli#m prod#ction and how m#ch prod#cers can e*port, hamstringing the needs o$ the rest o$ the world. A Peek Inside the Vaults

Ive act#ally held galli#m ) bac in %ovember, in an #ndergro#nd va#lt operated by the Swiss c#stoms a#thority o#t near the @#rich airport. I to#red the sec#re $acility where Swissmetal stores h#ndreds o$ specially designed metal b#c ets that hold millions o$ dollars o$ vario#s strategic metals $or investors. I dipped my hand into a b#c et $illed with individ#ally wrapped and n#mbered pac ets o$ galli#m and p#lled one o#t to e*amine. Seems so insigni$icant, given its importance to o#r lives + %evertheless, its no di$$erent than gold or silver ) a commodity that, I thin , investors sho#ld have some e*pos#re to in their port$olios, given the e*ploding base o$ middle-class cons#mers aro#nd the globe whose spending will soon overta e the West. To give yo# an insiders perspective on these metals, heres my interview with Swissmetal representative >n#t ,ndersen prior to my trip to Swit1erland. :old will always be in demand beca#se its a shadow c#rrency. !#t strategic metals, li e galli#m, will be e2#ally hot as an investment beca#se o$ a demand c#rve that o#tstrips s#pply. ,nd in that, theres always an opport#nity to pro$it. ?ntil ne*t time, stay Sovereign + Rhenium Long Term Agreements (LTAs) keeping Rhenium prices artificially low between jet engine manufacturers Rolls Royce, Pratt and Whitney and G.E. since 2009 (They use 90% of all the rhenium produced each year) and the main producer of Rhenium, Molymet, Chile, are due to expire by 2014. Molymet is expected to raise the value of their metal significantly to its natural value (it has been as high as USD 12,000 per kg before the LTA) as it is the second most rare metal, and the second most valuable in the world. Only about 50 Tons per year are produced. If you buy it as a single metal you will receive the purest available (aviation-grade .9999 fine Rhenium Pellets, normal is .999). More details on Rhenium, please click here: "Rhenium growth forecast Boeing forecast $4.5 trillion market for 34,000 new planes!" Gallium - A major component of the burgeoning LED and Solar Energy fields, integrated circuits, computer chips and lasers, to name just a few of its main applications. This metal is rare and critical, and only around 65 tons per year are produced making it an ideal individual metal to acquire for short term and long term, significant growth as even slight increases in demand drive up its value. at present, gallium has the most stable demand and, arguably, the most potential for price growth over the coming 2-3 years. Steadily growing demand for GaAs and GaN wafers, combined with rising demand from the LED sector, will mean that gallium metal will continue to be in demand from high growth industries for the foreseeable future. Gallium also has the potential to be used in significant quantities in green energy technologies, such as GaAs solar cells and CIGS thin film photovoltaic technology. From the supply side, growing reliance on Chinese gallium production has increased the threat of supply disruptions. As a by-product of aluminum refining, gallium is highly dependent on one of the most energy intensive metal refining industries and, for this reason, one that the Chinese government has put limitations on in the past. Just as the threat that Chinese restrictions on gallium exports would seriously impact global gallium availability and prices, so too would limitations on aluminum production, whether due to market effects, government regulations or environmental influences. SMI Clients will receive the purest gallium available at .9995. Ready for industrial use. More details on Gallium, please here: "LED implemented by Law in Germany by 2015, then EU, then the Worldthey all need Gallium!" Dysprosium One of the 16 rare earth elements (REEs), dysprosium is primarily used in high strength rare earth magnets due to its ability to alloy with iron as well as its high magnetic strength over a range of temperatures. Many alternative energy technologies, including wind turbines and electric vehicles remain dependent upon rare earth magnets Rhenium A 9ong Term ,greements B9T,CsD eeping <heni#m prices arti$icially low between /et engine man#$act#rers <olls <oyce, 'ratt and Whitney and :.7. since E44= BThey #se =45 o$ all the rheni#m prod#ced each yearD and the main prod#cer o$ <heni#m, &olymet, Chile, are d#e to e*pire by E4;F. &olymet is e*pected to raise the val#e o$ their metal signi$icantly to its nat#ral val#e Bit has been as high as ?SD ;E,444 per g be$ore the 9T,D as it is the second most rare metal, and the second most val#able in the

world. 8nly abo#t G4 Tons per year are prod#ced. I$ yo# b#y it as a single metal yo# will receive the p#rest available Baviation-grade .==== $ine <heni#m 'ellets, normal is .===D. &ore details on <heni#m, please clic hereH "Rhenium growth forecast Boeing forecast $4.5 trillion market for 34,000 new planes!" Gallium - , ma/or component o$ the b#rgeoning 97D and Solar 7nergy $ields, integrated circ#its, comp#ter chips and lasers, to name /#st a $ew o$ its main applications. This metal is rare and critical, and only aro#nd IG tons per year are prod#ced ma ing it an ideal individ#al metal to ac2#ire $or short term and long term, signi$icant growth as even slight increases in demand drive #p its val#e. at present, galli#m has the most stable demand and, arg#ably, the most potential $or price growth over the coming E-( years. Steadily growing demand $or :a,s and :a% wa$ers, combined with rising demand $rom the 97D sector, will mean that galli#m metal will contin#e to be in demand $rom high growth ind#stries $or the $oreseeable $#t#re. :alli#m also has the potential to be #sed in signi$icant 2#antities in green energy technologies, s#ch as :a,s solar cells and CI:S thin $ilm photovoltaic technology. 6rom the s#pply side, growing reliance on Chinese galli#m prod#ction has increased the threat o$ s#pply disr#ptions. ,s a by-prod#ct o$ al#min#m re$ining, galli#m is highly dependent on one o$ the most energy intensive metal re$ining ind#stries and, $or this reason, one that the Chinese government has p#t limitations on in the past. J#st as the threat that Chinese restrictions on galli#m e*ports wo#ld serio#sly impact global galli#m availability and prices, so too wo#ld limitations on al#min#m prod#ction, whether d#e to mar et e$$ects, government reg#lations or environmental in$l#ences. S&I Clients will receive the p#rest galli#m available at .===G. <eady $or ind#strial #se. &ore details on :alli#m, please hereH " !" implemente# $% aw in &erman% $% '0(5, then !), then the *orl#+the% all nee# &allium!" Dys rosium A 8ne o$ the ;I rare earth elements B<77sD, dysprosi#m is primarily #sed in high strength rare earth magnets d#e to its ability to alloy with iron as well as its high magnetic strength over a range o$ temperat#res. &any alternative energy technologies, incl#ding wind t#rbines and electric vehicles remain dependent #pon rare earth magnets The $ollowing metals are classi$ied as rare earth elementsH ceri#m, dysprosi#m, erbi#m, e#ropi#m, gadolini#m, holmi#m, lanthan#m, lithi#m, l#teti#m, neodymi#m, praseodymi#m, promethi#m, samari#m, scandi#m, terbi#m, th#li#m and ytterbi#m. Strategic metals incl#de rare earth metals and also chromi#m, cobalt, germani#m, manganese, molybden#m, titani#m, t#ngsten and others.