This metal is doing what some said gold would do.

TwoSides2aCoin

Palladium ?
Get out of the way.
What's the story on rhodium ?

Rare or precious ?

1630Boston

Rhodium is a rare platinum group metal (PGM) that is chemically stable at high temperatures, resistant to corrosion and mainly used in the production of automobile catalytic converters.

Properties
Atomic Symbol: Rh
Atomic Number: 45
Element Category: Transition metal
Density: 12.41 g/cm³
Melting Point: 3567°F (1964°C)
Boiling Point: 6683°F (3695°C)
Moh's Hardness: 6.0

Broadstruck

Also used as plating on electrical power and audio/video signal connectors to prevent corrosion.

TwoSides2aCoin

Thank you MDCXXX Boston. There has to be a greater or more specific use for it, to skyrocket like this, in a relatively short time (as markets go).
Curiosity killed the cat.

Aercus

Also used to plate white gold in jewelry. Last time I read up on this, the problem was on the supply side (possibly Russia?).

Broadstruck

Rhodium, Platinum, & Palladium are all mainly mined in South Africa and Russia.

Cameonut

I never get excited about Rh spikes in the spot market. Most large consumers have contracts with the mines. Any excess is traded on the spot market, which used to be a very thin market. Thus the price spikes if there is a hint of a shortage.

Smudge

Silver and gold are nerve-wracking enough.

1630Boston

Back in 2008, rhodium - the lesser talked about metal of the platinum metals space (PGMs) - reached $10,000 on the back of an electricity crunch in South Africa, the largest producer of the metal.

The metal eventually came way back to below $1,000 an ounce and has acted as a sitting duck for much of the time, until now.

On Friday, spot rhodium rallied $40 and hit $1,200 an ounce, more than doubling its gains since the start of the year. The rare metal is up nearly 70% year-to-date or $485 an ounce, with prices rebounding from lows of $575 last seen in July 2016.

Because the market is so small compared to the other metals, rhodium's moves can be drastic and volatile, explained metals expert, Peter Hug, global trading director for Kitco Metals. From 2003-2008, the metal surged almost 23-fold when it hit that record $10,000.

For those wondering rhodium who? The metal is primarily used in catalytic converters of cars which helps with emission controls.

On average, South Africa produces 86% of the global supply. In 2008, due to a slew of issues with the country's electricity supply, it affected the mining industry and caused a spike in the price of PGMs. Platinum went from $1700 to $2100, palladium rallied from $390 to $560, and rhodium hit a whopping $10,000 an ounce.

So why is no one talking about rhodium's recent rally?

It simply has to do with a lack of knowledge, said Hug.

"It traded all the way down to $650 in December 2016 which was a screaming buy. It was begging to be bought with car sales headed higher. I just think people don't have enough knowledge on the market and are nervous buying something they are not familiar with."

And what's behind the current momentum for rhodium?

"There are a number of things that have been added to the demand side of the rhodium equation since 2008," Hug explained. The metal has seen two new electronic traded products (ETPs) emerge, both by Deutsche Bank and Standard Bank Group Ltd., Hug explained.

"So you have investor interest which is taking some supply off the market which was not available in 2008. And if you look at the jargon coming out of the European Union, they are looking at a global recovery here. That is going to continue to create demand for cars and rhodium is a very difficult metal to mine. So you are seeing industrial demand added to the ETF demand and there is not enough supply."

The presence of strict regulation norms regarding emissions in various developed countries including the U.S., and the U.K. is also expected to fuel the metal's demand.

While Hug is hesitant about calling $10,000 again for rhodium he noted that a continued rally is not out of the question. "If these global economies are on track to start generating some significant growth, a $2,000 or $2,500 print is certainly within the realm of possibilities."

1630Boston

Rhodium at 2:23 minutes

https://youtu.be/fbvLeZdd7FE

jmlanzaf

@TwoSides2aCoin said:
Thank you MDCXXX Boston. There has to be a greater or more specific use for it, to skyrocket like this, in a relatively short time (as markets go).
Curiosity killed the cat.

Rhodium has been higher.

It is rare and has only a limited number of suppliers. It's price has often been volatile.

ricko

I will stick with gold, as I said in the Pd thread..... I guess I just like the relative security of the metal that has always been a medium of exchange. Cheers, RickO

Goldminers

The Bairdmint 0.999 Rhodium one ounce Tuvalu South Sea Dragon $100 coin is the only design I know of and they only have a few left of the 1,000 mintage 2018 from the London site. It is $5,300 USD or so now. Kitco had a few early in the year, but sold out now. I think Bairdmint struck 100 numbered uncirculated 2019's but they seem to be sold out at around $5,500 range.