Rhodium prices down over 94% in 5 months

[LargoWinch]

The collapse of the price of rhodium is a sight to behold: High of $10,100...as of the time of this post: $710!

How is that possible? How can market participants be so mistaken about the future value and supply/demand of this commodity is beyond me.

Side note: I know very little about this metal and hence, do not own any.

[touchring]

Re: Rhodium prices down over 94% in 5 months

is there a way to trade this? what is rhodium used for?

[blazespinnaker]

Re: Rhodium prices down over 94% in 5 months

Great find, Largo. Well done.

I wonder if gold investors will appreciate the appropriate lesson here.

[BrianL]

Re: Rhodium prices down over 94% in 5 months

If I'm reading this right, the primary use is in vehicle catalytic converters (81% of the use according to Wikipedia). Given the sales rate of cars and the push towards electric, I could definitely see possible justification for a drop.

How does one coorelate futures prices to commodity prices though? Apologies for the basic question, but it would be interesting to see how much of this is excessive speculation and how much is demand destruction.

[grapejelly]

Re: Rhodium prices down over 94% in 5 months

i wonder if platinum isn't a screaming buy right now...

[pwcmba]

Re: Rhodium prices down over 94% in 5 months

I was just looking at this earlier today. Kitco has a Rhodium pool - This morning it was offered at 1,000

https://online.kitco.com/bullion/index.html#pools

[Spartacus]

Re: Rhodium prices down over 94% in 5 months

I would guess the catalytic converter use switched to Platinum/Silver at the highest prices.

I would also think that the high price was some industrial users trying to stockpile.

Has a lot of the same properties as Silver, but If I remember correctly Rhodium is more heat, acid, radiation and wear resistant than Silver.

SOooo it's used in very high-profit-margin (mil-spec, satellite) applications that can justify the use of a higher-price, higher-performance version of Silver.

is there a way to trade this? what is rhodium used for?

[LargoWinch]

Re: Rhodium prices down over 94% in 5 months

I was just looking at this earlier today. Kitco has a Rhodium pool - This morning it was offered at 1,000

https://online.kitco.com/bullion/index.html#pools

It is my understanding that unallocated pool accounts such at Kitco's are illegal in the US and for good reason.

I would stay away unless you really really want Rhodium exposure (I believe that there are no coins/bars for this metal).

[DToM67]

Re: Rhodium prices down over 94% in 5 months

Platinum's been a staple in catalytic converters for some time. Rhodium is used, frequently as plating in electrical applications, including consumer electronics... It used to be common place to purchase home video/audio cables with Rhodium plated connectors. The drop in price is remarkable! I recall it being in the 6K region (last time I bothered to look)... Whole lot of movement since then.

[touchring]

Re: Rhodium prices down over 94% in 5 months

It is my understanding that unallocated pool accounts such at Kitco's are illegal in the US and for good reason.

I would stay away unless you really really want Rhodium exposure (I believe that there are no coins/bars for this metal).

thks, the spread is incredible.

[Andreuccio]

Re: Rhodium prices down over 94% in 5 months

Great find, Largo. Well done.

I wonder if gold investors will appreciate the appropriate lesson here.

Uhm, don't invest in Rhodium? :p

[blazespinnaker]

Re: Rhodium prices down over 94% in 5 months

Uhm, don't invest in Rhodium? :p

I think the lesson is beware of investing in a metal which has a value that has no real fundamentals (ie, you can't eat it / wear it / use it).

Commodities such as oil, food, etc have fundamental value.

[Andreuccio]

Re: Rhodium prices down over 94% in 5 months

I think the lesson is beware of investing in a metal which has a value that has no real fundamentals (ie, you can't eat it / wear it / use it).

Commodities such as oil, food, etc have fundamental value.

and

http://geology.com/minerals/gold/uses-of-gold.shtml

The Many Uses of Gold


Of all the minerals mined from the Earth, none is more useful than gold. Its usefulness is derived from a diversity of special properties. Gold conducts electricity, does not tarnish, is very easy to work, can be drawn into wire, can be hammered into thin sheets, alloys with many other metals, can be melted and cast into highly detailed shapes, has a wonderful color and a brilliant luster.

Can you eat Rhodium?

[sgominator]

Re: Rhodium prices down over 94% in 5 months

Hi all... this is my first post.

I'm jumping in because i can't keep myself from underlining the following notion:

rhodium is used to make catalytic converters = PAST
rhodium is used to make fuelcell membranes = FUTURE?

:rolleyes:

Pietro

[qwerty]

New industrial metals

rhodium is used to make fuelcell membranes = FUTURE?

:rolleyes:

Pietro

Exactly.

Now, anyone got some data on what the price of Indium is doing? You can't eat that either, by the way. But it is used for making LEDs which will replace incandescent bulbs.