Rhodium (Rh) is a very rare metal; the silvery corrosive resistant metal is used mostly in catalysts to clean emissions and pollutants.
The price of Rh has certainly been on a roller coaster ride over the last 40 years drifting from enormous over-valuations (US$ 10,000 per oz in 2008) to extreme under-valuation’s (US$ 600), where in fact we presently find ourselves today!
The metal competes with platinum; despite the fact that platinum mine production is 12 times larger than rhodium production. It is generally produced as a by-product and there are only about 10 mines in the world that can produce it.
As Rh is so rare it cannot respond to changes in demand easily and therefore the price is driven by simple supply and demand factors.
for Investment Examination
Considering the price mismatch and supply demand dynamics that are palpable at this time, rhodium is a very compelling and exciting investment for the medium term investor (2 to 5 years).