• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 17 mins Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 5 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 10 hours Mr
  • 9 mins Russia's Rosneft Oil is screwed
  • 19 hours While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 7 hours Free market or Freeloading off the work of others?
  • 9 hours Marine based energy generation
  • 21 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 22 hours How to Create a Pandemic
  • 7 hours China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 14 hours Which producers will shut in first?
  • 21 hours Real Death Toll In CCP Virus May Be 12X Official Toll

Breaking News:

WTI Slides On Huge Crude Inventory Build

Alt Text

Are We Really Facing A Battery Metal Shortage?

Electric car builder Tesla foresees…

Alt Text

This Key Battery Metal Is Set To Soar By 250%

Copper prices surged to a…

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

Premium Content

Pssst! Have You Heard About Rhodium

When I was at the New York Hard Asset Investment Conference 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 last year to 15 million units over the next five years to maintain a firm bid. So far, they are running at a 12.5 million annualized rates this year. As a result, rhodium has nearly tripled in the past six months to $2,200/ounce, but is still well shy of its $10,000 record high.

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 (click here for their website).  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). Granted, prices here are vastly overheated, as they are for so many commodities. But it is something to keep on your list when we get a substantial sell of in 2011.

And don’t tell anyone I told you.

By. Mad Hedge Fund Trader


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




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