For a long time, rhodium was not considered a classic investment material. Due to the increasing interest of investors who are expecting long-term rising prices for special metals, rhodium can now be purchased as tradable and certified industrial rhodium powder or as rhodium ingot. Due to the high melting point rhodium is usually traded as a powder. In this consistency, rhodium is particularly suitable as an investment because it has a higher purity than ingots and can be immediately re-used in industry. But since demand has increased so much in recent years, rhodium ingots are now being offered. These are manufactured in England at the LPPM (London Platinum and Palladium Market) certified mint Baird Mint. However, when repurchasing the slaughterhouses, the rhombus ingots will have to be converted into powder again only if it is to be used again in industrial production.
Volatility of the rhodium price
Rhodium is a lot more expensive than gold, but its price depends largely on the demand of the automotive industry, as it is the main buyer of rhodium. The interim sales problems of the automotive industry in the last banking crisis also exposed the price of rhodium to greater fluctuations. 2012 achieved above all the German car manufacturers record sales. The boom in the industry has rocketed the rhodium price. The current price for rhodium bars (March 2013) is about 1.300 US Dollar per troy ounce. Due to the volatility of the price, the spread between buy and sell prices is higher for rhodium than for other precious metals. Since the rhodium price is almost directly coupled to the automotive industry, one should always be aware that the investment in rhodium is not free of risks.
Properties and removal
Rhodium is the rarest among the precious metals and has similarities to platinum and palladium. Its name is derived from the Greek word "rhodeos", which means "rose red". The name was born because many rhodium compounds have a pinkish hue. In its pure form, however, rhodium is silvery-metallic. Rhodium carries the atomic number 45 in the periodic table and is abbreviated to "Rh". Its melting point is around 1963 ° C and its specific gravity at 12,38g / cm³. Rhodium is mined mainly in Zimbabwe, South Africa, Canada and Russia. Every year, just 20 tons of precious metal are produced from the mines. The low yield can also be attributed to the fact that the extraction of rhodium is very difficult, since it occurs in ores together with precious metals such as silver, gold or platinum.
Application
Rhodium finds its use mainly in the automotive industry, which produces catalysts from this material, since rhodium as well as platinum has a catalytic effect. Since even less ammonia and nitrous oxide are formed when using rhodium in catalytic converters, it is even more suitable than platinum itself. For example, the jewelry industry often uses rhodium as a protective layer for its products.
This is a guest article of the ESG precious metals trade.
More information about rhodium as an investment.
More information about buying rhodium.
