• 6 minutes Can the World Survive without Saudi Oil?
  • 10 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 15 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 2 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 5 hours Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 1 hour WTI @ $75.75, headed for $64 - 67
  • 12 hours Judge Approves SEC Settlement With Tesla, Musk
  • 7 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 7 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 10 hours EU to Splash Billions on Battery Factories
  • 7 hours China Thirsty for Canadian Crude
  • 9 hours Iranian Sanctions - What Are The Facts?
  • 12 hours Gold price on a rise...
  • 12 hours Porsche Says That it ‘Enters the Electric Era With The New Taycan’
  • 8 hours Two Koreas: U.N. Command Wrap Up First Talks On Disarming Border
  • 7 hours Shell, partners approve huge $31 billion LNG Canada project. How long till Canadian Federal government Environmentalates it into the ground?
Alt Text

This Year, Everyone Will Love Uranium

Utilities have been buying uranium…

Alt Text

As Diesel Dies, One Commodity Is Crashing

Platinum futures plunged to 14…

Alt Text

Busting The Lithium Bubble Myth

Lithium demand continues to grow…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Trending Discussions

Commodity Investors Now Turning their Attention to Rhodium

When I was at the Hard Asset Investment Conference in New York a few weeks ago, every hour someone would stop by my table, mention the word "rhodium", and walk away.

My interest piqued, I decided to look into this mysterious metal. Rhodium (Rh) is in fact the rarest precious metal in the world, and is also the most valuable.

The white metal is used primarily as a catalytic convertor by the auto industry as a much more efficient alternative to platinum and palladium. It is also used in jewelry, the plating of mirrors, and in neutron flux monitors in nuclear power reactors.

South Africa produces 80% of the world's meager 25 metric tonne annual supply, and therein lies the angle.

Rolling power shortages in the country has lead to the same intermittent mining stoppages that have affected the other metals. On the demand side, you can count on a US auto industry that is boosting production from 9.5 million units to 15 million units over the next five years to maintain a firm bid.

As a result, rhodium has nearly tripled in the past six months to $2,500/ounce, but is still well shy of its $10,000 record high.

Rhodium Price

Rhodium is not exactly easy to buy. There are no futures contracts, and most of the physical production is tied up in long term contracts. Since the metal is so unbelievably hard, it is difficult to work with, and only one company, the Cohen Mint, is offering .999 fine coins and bars (Website: http://www.goldfortomorrow.com/ ). 

But expect to pay a hefty spread over spot, up to 20%, that is standard for a single source supplier.

A more liquid option can be found through buying the shares of the largest rhodium miners, which often appears alongside platinum, like Anglo American (AAUKY.PK), North American Palladium (PAL), or Stillwater Mining (SWC). And don't tell anyone I told you.

 

By. Mad Hedge Fund Trader

 




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News