Why Does Rhodium’s Price Matter?
There was one commodity that has quietly been having an astonishing breakout performance It is a precious metal that has even been dubbed the world’s most precious metal by some. The precious metal is rhodium. Rhodium is a metal in the same group as palladium and platinum. While rhodium is not commonly bought by nonindustrial consumers, some experts suggest it could function as a bellwether for prices of related metals such as palladium.
So far this year, rhodium’s price has increased by over 40%. The rally isn’t entirely new, as Bloomberg reports that rhodium is price has increased 12 fold over the past four years Analysts from metal focus believe that the rhodium may even beat its previous record price from 2008 of $10,000 an ounce. Recent demand spikes for rhodium has been driven primarily by industrial sectors in Asia as well as a general interest in precious metals as a safe haven. There are also supply side constraints too. Almost 60% of the world’s rhodium supply comes from South Africa where it is produced by a byproduct of platinum mining.
Many of these mines have been suffering production issues and rhodium’s status as a byproduct of platinum makes it harder to increase output to meet demand. While these supply and demand issues still exist, many have suggested that rhodium is price could keep climbing.
Like rhodium, palladium is a precious metal from the platinum group that has been seeing a huge surge in its price recently.
It also has seen a recent increase in demand, mostly driven by its use in automotive manufacturing. While the supply and demand issues remain, many experts have predicted that the palladium could continue to surge upwards in price. To get more information about the supply of precious metals like palladium, call the number on your screen and get U.S.
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Money Reserve’s Coy Wells and thank you for reading Market Insights.