Leverage Gold" business segment
In the "Leverage Gold" business segment, Deutsche Metallkasse AG acquires physical commodity deposits with the highest possible leverage on the corresponding commodity price.
For example, Deutsche Metallkasse AG enables its shareholders to invest with leverage in tangible physical commodities instead of just in commodity derivatives (Warren Buffett: "Derivatives are financial weapons of mass destruction").
"Leverage means that small changes in a variable lead to large changes in the result. For example, a leverage of six with an increase in the gold price of 10% leads to an increase in the value of physical gold reserves of 60%.
In contrast to all other financial products with leverage (options, warrants, futures and CFD contracts), leverage on physical commodities has no expiry date.
Another important advantage of this business segment is that it can be implemented with minimal operating costs, as no expensive and time-consuming extraction of the raw material deposit is required; instead, the raw material deposit is simply sold once the price has risen.
Anticyclical commodity investments
As a rule, Deutsche Metallkasse AG will take advantage of the cyclical nature of the commodities market.
This means that investments are made when the commodity price is favorable, sentiment in this commodity is very pessimistic and the rest of the set-up, such as chart technology, whose signals are followed by many other market participants, and a possible seasonal cycle, also signal a buy.
Conversely, the profits from such an investment are realized when the commodity price is high and sentiment is very positive and the rest of the set-up also signals an exit.
Special situations
Deutsche Metallkasse assumes that, in contrast to the usual anti-cyclical investment model, special situations will arise on the gold and silver markets in the coming years, so that these two commodities will form the investment focus in the coming years.
The expectation of such an investment focus was also the inspiration for the name "Leverage Gold" for this business segment.
Strategic investments
Finally, within the "Leverage Gold" business area, investments are conceivable that fall neither into the "anti-cyclical" nor "special situation" categories, but are intended to serve as strategic investments for the overall further development of this business area.