In 2019, investors were eager to talk about Palladium, gold, oil or other types of investment assets when the market was too volatile as well as influenced by geopolitical conflicts. However, on the whole year, Rhodium is the most successful metal asset.
In the past month, the metal, commonly used in the auto industry and five times more expensive than gold, has risen by 32%, reaching a record high since 2008. New car emissions regulations have caused A series of raw materials for the automobile industry increased prices. Moreover, speculators looking for precious metal assets as shelters are also said to push prices of items like Rhodium up.
Rhodium is a material that can resist high temperatures and outperforms other platinum group metals in removing nitrogen oxides from car exhaust, so it with Platinum and Palladium becomes a scarce commodity. with car manufacturers who want to improve their emissions.
Since 2015, the price of Rhodium has increased 12 times and beat every other traded item in the world in terms of growth. The strong development of the electric automobile industry as well as the stricter regulations on car emissions have prompted a series of metals such as Rhodium, Platinum or Nickel to increase prices.
According to MMC Nirilsk Nickel, the company that produces about 10% of Rhodium in the world today, the limited supply and the participation of speculators have made the price of this metal go crazy.
Rhodium price on session 10/1 reached 7,975 USD / ounce (28.4 gr). Speculators are now focusing on precious metals such as Rhodium or Palladium, especially after recent US-Iran tensions have raised fears of a war. Palladium prices have increased about 9% in the past 1 month.
Rhodium beat other items in the market for 2019 price growth
According to Swiss conglomerate MKS PAMP, although Rhodium prices are likely to be adjusted in 2020, they are still likely to exceed the $ 10,000 threshold that was set in 2008. led car manufacturers to switch to cheaper materials like Palladium or Platinum.
For those who want to speculate on the Rhodium market, they are much harder to invest in gold or other metal markets because this is a new and relatively small market. Rhodium is not traded on traditional exchanges. The famous exchanges today mainly trade items like gold and silver. Rhodium production is only about 1/10 compared to Platinum or Palladium.
The rise in Rhodium is good news for Africa, which produces the metal itself and accounts for more than 80% of global production. In the past year, the rise in the prices of metals has led to a 3-fold increase in the prices of many mining companies, reaching a peak since 2011.
The annual demand for Rhodium is inferior to other metals (million ounces / year).