Many investment strategies are based on diversified asset allocation. Although each investor has his own preferences, there are no small number of investors who spread the investment over various asset classes to minimize the risk of stocks, ETFs and Co. In the long term, the stock market offers the chances of an above-average return that outperforms all other assets. Nevertheless, alternative asset classes also have their justification-of course, always depending on the personal wealth situation and the goals pursued when investing money.

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Commodities represent a separate asset class. This does not generate regular payments in the form of interest or dividends. Vielmehr is only about the development of the price, which is composed of supply and demand. Investors can invest in such tangible assets, for example, using special financial products such as ETCs. At the same time, there are also stocks that can be assigned to a specific industry and strongly correlate with the development of commodity prices.

The following article is about five tangible assets that are worth a closer look in August 2021. In the medium to long term, these raw materials could continue to develop at an above-average rate.

Lithium

LithiumLithium will remain one of the most exciting raw materials in August 2021. Lithium is one of the most important raw materials for the production of electric vehicles. The rapidly increasing demand in the field of e-mobility is likely to cause further price increases in the lithium price in the coming years.

In recent months, the precious metal known as white gold has been one of the top performers in the precious metals sector. The mix of limited supply and rising demand is explosive. More and more countries around the world are investing in e-mobility and boosting the industry with subsidies.

The lithium-ion batteries required for electric vehicles consist of around 10% lithium. Here, investors are spoilt for choice and can invest directly in the raw material in promising companies such as Standard Lithium or via ETC.

Silver

Silver BarsThe precious metal silver is one of the winners of the corona crisis.

Although the price has been running sideways for long distances in recent months, there has been a strong performance since the corona slump in April 2020.

In the last three months, the price of silver corrected by about 14%. However, in the medium term, the precious metal could continue to perform above average, which is both in demand in industry and popular as an investment.

Water

WaterClean Water ETF - Water ETF-Glass with water is the raw material that is essential for our lives. Because we humans need water to survive. True, on Earth there is a considerable part of water. But only about three percent are classified as fresh water. Drinking water is only about 1% of this. Water thus has the potential to become the most important raw material of the 21st century with a growing world population. Those who rely on this development can, for example, invest in shares of companies that take care of water supply or treatment.

Palladium

In recent months, the precious metal palladium has become the focus of many investors. The mega rally of recent years has impressed many investors. Palladium is an important raw material in the automotive industry, the electrical industry and also in medical technology. Over the past five years, the price has increased by more than 250 %. After a consolidating movement, the next rally could soon start at Palladium, which also surpasses the last all-time high from 2020.

Wood

At the beginning of the year, the raw material wood was on everyone’s lips. Because the local craftsmen complained that it was hardly possible to get the important timber at a fair price. Many construction projects became significantly more expensive. Between November 2020 and May 2021, the price of wood more than tripled.

But the free market economy has once again demonstrated efficiency. Because of prices at over 1600 US dollars, the price of wood corrected within a few weeks to a price level of almost 500 euros. Thus, the total price gains of the last rally have disappeared again. Because the manufacturing companies did everything in their power to expand the supply, while the demand construction projects often postponed, so that demand fell. However, producers are likely to reduce their production at current prices. When the construction projects start again, the price of wood is likely to rise again – although not to the old level from May.