Securities Investments

The Russian stock warrants as an investment alternative with huge returns from the economic point of view there are money securities such as E.g. change, the equity securities such as bonds and shares and the goods value papers, where it’s the securitized claim from delivery or storage of stored material. Because according to Russian civil law (art. 912), each stock certificate can act as a securities, goods securities represent an interesting investment alternative. Stock certificates issued by the Russian warehouses are the real securities (in the Switzerland such as warehouse receipts cannot be traded or mortgaged!). By Russian law, the minimum requirements are regulated namely, should contain each stock certificate. The warehouse receipts can be transferred by endorsement or but also sold; It depends on whether it is a duplicate or a simple stock certificate. On the basis of these documents, the goods can be exchanged or sold.

Because the Bank funds have become anywhere close and inventories as are a sign of market shortage and the Russians high interest rates are perfectly acceptable (Sberbank has reduced the interest rates for the loans over 2 year period to 14% in 2011, to celebrate the 170 year anniversary), offers an opportunity to earn a return of 25% in the year such investment. The easiest way that happens to excess industrial metal inventories. To minimize the risk even further, can be ordered also the international companies such as SGS as a storekeeper and close a hedge transaction as a hedge against Rohstoffpreisvolatilitat / exchange rate differences from (in a warehouse approved by the London Metal Exchange as a warehouse warrant would be a highly liquid securities, fights back but London Metal Exchange about it, because then yes the inventories in the LME’s official stock figures could show up and disrupt the fundamental situation of the market). Here an example: end of 2010 a Russian company has a double warehouse warrant, consisting of goods receipt and deposit certificate (the owner of goods licence may sell the goods and the owner of the deposit ticket receives lien on the goods in full amount of the loan including interest) for the BSS en 1978:1998 offered compliant copper cathodes. The company has copper as a strategic asset and had no intention to sell the goods. A warehouse warrant for 1,000 tons was offered on 01 March 2011 for a value of US $5 million (exchange rate risk borne by the RU company!).

The price was US $9,700 in Russia at that time about to offer adequate security to the investor. The goods stored in a warehouse of the State subject to the review of the international of quality inspection Institute. The company has made the proposal to arrange the deal as a sale purchase (REPO) and has requested the option to repurchase the goods for US $6.5 million. Now has the copper value on the Russian market to approximately US $8,000, for the investor, but still the security would be preserved, if is the issuer of the stock certificate not on the Keep the Treaty could have. Because underlying Russian civil law was completely revised the Russian civil law, the Russian legal framework complies with international standards. As a result, the investment climate has been improved consistently and significantly. And therefore also the goods securities represent an interesting investment alternative.

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