News Archive Precious Metal Trading

After a year’s planning and implementation phase, the precious metals trading unit of the precious metals and technology company Heraeus moved in June to its new offices within the Heraeus facility in Hanau. Commenting on the move, Hans-Günter-Ritter, Managing Director of Heraeus Metallhandelsgesellschaft mbH (HMG), said “The new and highly modern trading room will allow us to cater to the demands of our increasing business volume and provide the necessary infrastructure for our trading team to grow along with it.”

The new trading room, designed by the Offenbach-based company Stadler, can accommodate up to twelve traders. Settlements / Back-office and precious metals Controlling have also re-located and now occupy offices adjacent to the traders.

“Thanks to the upgraded infrastructure and technology we will in future be able to provide an even better service to our internal and external clients. Additionally we have laid the foundation for further growth of HMG’s activities” Ritter went on to add.

The address and contact details of Heraues Metallhandelsgesellschaft, save the building number, have not changed:

Heraeus Metallhandelsgesellschaft mbh

Heraeusstraße 12 – 14

Building Y6, EG

D - 63450 Hanau

'Telephone: +49 (0) 6181.35-2750

Fax: +49 (0) 6181.35-9444

Email: edelmetallhandel@heraeus.com

Web: www.heraeus-trading.com

Reuters-Page: HERH; Reuters Dealing: HERA

Of late you will find “Heraeus” in prominent places in Hong Kong: a large number of double-decker buses are driving around the once-British colony painted with posters of Heraeus Gold Bars. They are advertising for an Exchange Traded Fund (ETF), an exchange-traded investment product that was introduced to the Hong Kong exchange only late last summer. Also at the presentation marking the launch of the product at the exchange original Heraeus Gold Bars were used to help those present familiarise with the product.

Gold Exchange Traded Funds are exchange traded investment products that require to be backed by physical gold. Since about three years these products are being offered by a number of banks and other issuers and are available at various exchanges world-wide. ETFs are especially popular in the USA. So far about 1,000 tonnes of gold have been sold in this form.

On November 27th, 2008 in Hanau the Heraeus Metallhandelsgesellschaft mbH (HMG) proudly hosted what is now the fourth Heraeus Precious Metal Forum in succession. Invitations were sent out not only to clients in the industrial and financial sectors, but also to in-house customers at the various divisions of W. C. Heraeus GmbH. The final tally of 120 participants meant that the large conference room in the Richard-Küch-Forum was full to bursting once again this year.

The Trading Division succeeded anew in 2008 in attracting top-class internal and external speakers to this highly prestigious event. The forum was officially opened by Dr. Roland Gerner, Managing Director of W. C. Heraeus. His words of welcome were followed by Dr. Thorsten Polleit, Head Economist of Barclays Capital in Germany, who gave his impressions of the causes of the present financial and economical crisis. Polleit went on to surprise his listeners by suggesting in the course of his forecast on the future development of the economy that gold should be accorded a firm role in the global finance system for the first time since 1973.

The second topic of the afternoon dealt with the possibility of precious metals as items of investment. Eugen Weinberg from the Commerzbank AG pin-pointed first and foremost the various influencing factors which came to bear on the price of gold this year, and which determined the decisions taken by investors and speculators alike.

Dr. Nordholm Behrens, Head of the Contact Materials Division, characterized in his presentation the range of applications involving gold in the electronics industry. The audience comprised many people who normally view gold merely as an investment commodity. For them in particular, this brief journey into the tangible world of gold deployment must have been a real eye-opener.

In conclusion came three papers which dealt predominantly, either directly or indirectly, with the platinum metals. The speaker with by far the longest journey behind him was Troye Brady, an analyst at Lonmin, the third largest platinum producer in South Africa. In his presentation he gave an insight into the situation currently facing the South African mining industry. Wolfgang Haggenmüller from the research institute CSM worldwide GmbH reported on the present state of the automobile markets, and even dared to offer a prognosis for the next years. Last, but not least, Clemens Hensel from Duesmann & Hensel Recycling GmbH provided a glimpse into the world of recycling spent automobile catalysts and their significance in keeping the industry supplied. The forum was finally rounded off by summarizing a variety of incidents affecting the precious metal markets and the future prospects for changes in market trends over the next 6 – 12 months. This presentation was held by staff members of HMG.

It was a day of lectures and discussions to be remembered and commended for a long time afterwards. It culminated in a dinner for the participants which was held in Heraeus‘ own canteen, specially transformed for the occasion. Even then, talks with precious metal themes continued until well after midnight. Finally, participants and organizers were of the same opinion, that in 2009 a repeat performance of the precious metal forum is a must. In fact, the date has already been set: November 26th, 2009.

Heraeus Limited in Hong Kong (HLH) succeeded in its LPPM Good Delivery application for Platinum and has been added to the LPPM Platinum Good Delivery List with effect from July 21, 2008.

The London Platinum and Palladium Market (LPPM) is a renowned trade organization, the purpose of which is to promote professional trading of both platinum and palladium metals in London.

Heraeus Ltd. is the first refiner in Greater China to be accredited by the LPPM. It marks another important milestone in the history of HLH after its inclusion on the “Good Delivery” gold list of the London Bullion Market As-sociation (LBMA) in 2006.

To be included on the Good Delivery List for Platinum, refiners are required to have an annual production of platinum of not less than five hundred ki-los, in the form of good delivery metal, for a minimum of the last three con-secutive years and be able to produce platinum bars, which conform to the good delivery specifications of the LPPM especially in regard to form, weight, purity, markings and appearance.

Mr. Kupka, President of Heraeus Ltd. in Hong Kong said that “this is an-other big step forward for our organization and will further strengthen our platinum business, since we have successfully been accredited by the LBMA as acceptable refiner in gold in the year 2006!”

The Heraeus Metallhandelsgesellschaft mbH (HMG) greeted around 200 guests on May 21, 2008, at its traditional luncheon during London Platinum Week. Guests included trading associates, producers and industrial end users.

In his address, the Managing Director of HMG, Hans-Günter Ritter, made reference to the great challenges that the extreme volatility and unpredictable developments in the precious metals markets have brought to all involved in recent months.

Professional participants in the market from around the world meet at Platinum Week in May of each year to exchange views on the latest market developments. The high point of the event is the London Platinum and Palladium Market’s platinum dinner, which takes place on Wednesday during Platinum Week.