How About Genuine Coins That The Us Mint Did Not Make
You have probably seen advertisements for them too. They could be coins that were manufactured to look like genuine quarters, half dollars or silver dollar coins, or something else. You will also notice that the word copy is stamped on them somewhere, indicating that they are not genuine U.S. currency.
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Pros And Cons Of Investing In Rhodium
As mentioned, rhodium is an expensive asset. Most investors appreciate that the metal is constantly in the thousand range. It almost never drops into the hundreds. Of course, that doesnt make rhodium much of an accessible asset, but those who can afford it will buy-in.
Also, rhodiums use in automotives makes it a safe investment. After all, the car industry isnt going to disappear randomly. Investors know that the metal will be in use for a long time.
That said, rhodiums rarity makes it a volatile asset. Some investors will like this. After all, they can profit largely in the short-term. New investors might want to be wary, however. If theyre not paying attention, that volatility can ruin them.
While rhodium might be hard to discover, investors will appreciate that its relatively easy to buy. You can buy rhodium physically in terms of bars or coins, or even buy rhodium online. Of course, the asset is quite expensive, so its only reasonable to invest in a significant amount. Investors can even purchase bars made of other metals as well since a pure rhodium bar is so pricy.
With all of this talk of price, its pretty easy to know who is buying rhodium. Investors with a ton of money to throw around are doing so. Those who want to buy expensive jewelry for their friends and family are as well. Automotive companies buy the metal in bulk, so theyre also investing in it.
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How To Invest In Rhodium
Now that youre aware of the pros and cons of Rhodium, its important to understand how to invest in it.
The easiest way is to buy Rhodium online. This can be done in a coin or bullion bar format. Bars are certainly cheaper, though they can be expensive to store correctly. Coins are easier to store but are hard to find and mold.
Depending on the Mint you purchase from, you can buy Rhodium in various fractional amounts as well. These are the most popular ways to buy, as you dont have to commit to an entire bar of Rhodium.
Recently, Rhodium ETFs and Futures have been introduced. However, only the most dedicated of traders should participate in this due to the assets volatility.
While Rhodium is a rare, expensive asset, there are certainly pros to owning some. However, its not accessible to all, and its important to understand if you can afford to make it part of your portfolio.
Why Physical Rhodium Is So Valuable
Rhodium is among the rarest metals on earth and a vital component of the multi-trillion dollar global automotive industry. The versatile metal is also used in optical instruments, electrical connections, jewelry finishes, and aircraft turbine engines.
Rhodium-plated jewelry has become less popular as the demand for the metal has grown. However, a plating of rhodium is still frequently used when photographing jewelry as it gives it a shine that is difficult to achieve with other means and can drive up the price of the piece.
As the world pushes harder toward clean energy sources, the value of rhodium is poised to climb. It is a crucial component used by the automotive industry to produce lower emissions. Rhodium in catalytic converters reduces nitrogen oxide emissions, which have unfavorable effects on human health, agriculture, and ecosystems.
Rhodium is not currently exchange-traded, making it one of the few metals that adhere strictly to supply and demand principles. Given that demand seems likely to continue to increase and the supply cannot keep pace because of its rarity, most experts agree that the price is poised to continue to climb for the foreseeable future.
Given that there is no current substitute for rhodium, and it seems unlikely that supply will increase, adding rhodium to your physical assets investments will help create a diversified portfolio.
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One Of The Rarest And Most Important Metals On Earth
It’s one of the most important metals to the $2 trillion global auto industry…
Over 100 times rarer than gold…
And in 2008, it sold for over $10,000 an ounce!
Prices have now dropped to about $750 an ounce.
But the demand for the ultra-rare metal is always increasing.
I’m talking about a commodity that you may not be familiar with: rhodium
Rhodium is part of a group of metals called the platinum group metals. Along with platinum, palladium, ruthenium, iridium, and osmium, these metals have similar physical and chemical properties.
Rhodium is used in specialty optical instruments, electronics, aircraft turbine engines, and as a jewelry finish.
But the primary use for rhodium is for automobile catalytic converters specifically three-way catalytic converters which convert harmful hydrocarbon gases from auto exhaust into less harmful substances.
Autocatalyst manufacturing accounts for over 80% of the world’s annual rhodium demand. So demand from the automobile industry is critical for rhodium.
And while the short-term outlook for the auto industry may be questionable, with slower growth in places like China and Europe, global light-duty automobile demand is expected to double by 2019 and nearly triple by 2024.
That might be a problem for end users…
Because rhodium production is extremely limited.
Rhodium is one of the rarest metals on Earth so rare that a year’s worth of total global production could fit on the back of three pick-up trucks.
Until next time,
Buying Rhodium As An Investment
Purchasing rhodium bullion is a unique way to diversify a portfolio into precious metals.
Rhodium is extremely valuable, rare, and only looks to keep growing in price as supply remains low and demand rises. Investors have the ability to purchase rhodium coins and bars and even purchase funds with rhodium exposure and cryptocurrencies backed by precious metal.
Investors can rest assured the current options for buying Rhodium represent safe and secure ways to buy into the valuable metal and add the asset to their portfolio.
Founder Dinis Guarda
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Where Is Rhodium Found
The worlds main rhodium mining industry is in South Africa. About 80% of rhodium mine supply comes from South Africa. Russia produces the next largest percentage of the worlds rhodium supply. Canada and the USA mine about 3% while Zimbabwe mines about 4% of the worlds annual rhodium supply. Annual world rhodium production is about 30 tonnes or just under 1,000,000 troy ounces per year.
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What Makes Rhodium So Valuable
Rhodium is a relatively unknown precious metal, perhaps due to the concentration of its worldwide demand in automotive catalysts, where it is used in smaller quantities alongside the sister PGMs palladium and platinum. It is considered the rarest and most valuable precious metal in the world, much more so than gold or platinum.
Investing Beyond Rhodium Stocks
These rhodium stocks are some of the best in the industry. Although, there are many different stocks to consider. And building a diverse portfolio can help limit risk.
For more opportunities, check out these nickel stocks. With the rise in electric vehicles, were seeing demand for metals spike in different areas. And while were at it, here are some EV charging station stocks as well.
With the markets always moving, the best investing opportunities come and go. So, feel free to continue exploring Investment U. We strive to deliver the most useful investment research and ideas
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Rhodium Historical Prices Overview
The metal hit a record high in March this year as demand outstripped supply. The precious metal started 2021 at $17,300 a troy ounce and peaked at $29,800 on 23 March an all-time high.
Prices corrected downwards in the second quarter as the lower automotive production pulled the metal lower. Reduced automotive output has led to lower catalytic converters being manufactured, which weighed on rhodium demand. As a result, prices have been falling since mid-May and dropped to $11,250 on 16 September, the lowest in 2021. Prices have since rebounded amid improving anticatalyst consumption.
Although rhodium prices have fallen by more than 50% from the peak of the market this year, the precious metal is still significantly higher than prices in the last decade, where prices were mostly between $1,000-$1,500 an ounce.
The high prices have benefited rhodium stocks as the precious metal lifted producers profit and became the biggest revenue stream.
The surge in the metals prices have also highlighted rhodium as an investment, leading to increased interest in rhodium exchange-traded funds . As the rhodium value peaked earlier this year, many investors took profit by liquidating their ETF position. According to major PGMs consumer Johnson Matthey, around 14,000 ounces of rhodium remained in ETFs by May this year.
Where Is Rhodium Traded
The rhodium market is much smaller compared with platinum by consumption volume. The precious metal does not trade on exchanges and most transactions happen in the physical market, where consumers, such as carmakers, purchase the metal from suppliers. Rhodium is also traded in the form of physically-backed exchange-traded funds , where investors do not hold physical assets.
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Why Is Rhodium So Expensive
Rhodium prices are higher than those of other PGMs because of the metals rarity and the complex industrial extraction process required to produce it. There are very few rhodium minerals, and more than 80% of the global ores are concentrated in South Africa followed by Russia. According to the Minor Metal Trade Association , the annual world production is only about 25 tonnes. Rising demand for the metal amid supply tightness has further increased rhodium prices.
Some of the largest exchange-traded Rhodium mining companies stocks are Anglo-America , Implats , Sibanye-Stillwater and Russias Nornickel .
Should You Buy Rhodium Stocks
Mining is a capital-intensive, cyclical business. During economic prosperity, rhodium mining businesses have more money to spend on new mines and expansion plans. However, mining businesses frequently have issues due to the long lead periods needed to execute projects. Returns are impacted when projects established during boom times do not start until the cycle has changed.
The level of debt a rhodium firm carries should also be of particular concern to investors in rhodium equities. While businesses with significant debt levels sometimes suffer when the economy is weak, those with low production costs are the most successful and less likely to rely on debt to finance expansion extensively.
Investors should concentrate on the best rhodium mining firms in light of these difficulties. They have demonstrated that they can turn a profit no matter the state of the economy. Including high-quality rhodium stocks in your portfolio may be a good idea if you do not mind a little volatility and prioritizing dividend payments.
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Why Invest In Rhodium
As mentioned, rhodium is a valuable precious metal. Its used in catalytic converters, jewelry, the glass industry and even some medical devices. Although, its supply is limited. Well get to that in a second but first, lets compare the price of rhodium to gold
An ounce of gold today costs close to $1,850. Thats a steep price tag but pales in comparison. The price of an ounce of rhodium comes in well above $10,000. And for a short time in 2021, it even came close to $30,000. So, why is rhodium so much more expensive?
Rhodium is a rare member of the platinum group. As one of the rarest elements in the Earths crust, analysts estimate its 0.0002 parts per million. On top of that, industrial extraction of rhodium is complex. The ores are mixed with other metals and there are few rhodium-bearing minerals.
As a result, investing in rhodium stocks has some geographical limits. The bulk of known and accessible deposits are in South Africa, Russia and North America. The main exporter has been South Africa, followed by Russia. And with the war in Ukraine, that helps explain why rhodium prices spiked.
Theres been a lot of supply disruption over the past few years. Although, with any crisis comes opportunities. The U.S. and other countries are making moves to reduce their reliance on certain countries. Keep this in mind as we look at the top rhodium companies
Rhodium: The Unsung Hero Of Precious Metals
As far as hard asset investment go, gold and silver are a clear favourites among investors because they are a long-term store of value. In recent years, however, other precious metals are slowly stepping into the spotlight and are becoming an attractive option to diversify investment portfolios.
In this article, we will be talking about rhodium: the unsung hero of precious metals and how you can effectively add it to your investment portfolio.
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Why Should You Invest In Platinum Rhodium & Palladium
Some precious metals lose their respective shimmer when they are pitted against all the headlines of the ups and downs of the gold and silver market, but platinum, rhodium and palladium have been steadily growing in stature of late.
Some investors are attracted by the more speculative nature of Platinum Group metals and thus their potential price upside, whilst others are drawn to the mystical nature of these rare elements. At Sharps Pixley, most of our offering comprises of gold and silver, however, we also know that some of our customers are looking to add something just a little bit different to their portfolio and this is why we offer expert PGM opinion and buying guidelines to our customers.
Our guide is for those who wish to look past the more popular options of gold and silver in order to venture into precious metal investment.
How Does Rhodium Enterprises Make Money
Like other Bitcoin miners, Rhodium makes its money by setting thousands of purpose-built mining computers to work out the complex mathematical problems that unlock new units of cryptocurrency.
Looking at its financials, Rhodium achieved net income of $12.8m on revenue of $82.1m during the nine months ended 30 September 2021. This compares to $5.15m in revenue from the nine-month period ended 31 December 2020.
The company began mining Bitcoin in September 2020. From there, Rhodium mined 2,132 Bitcoin over the next 12 months using around 22,600 miners being powered by approximately 80 MW.
The average amount of Bitcoin mined per day by the company has increased throughout its lifespan, rising from 1.04 in the first six months of its operations to 5.7 in the six-month period ended 30 June.
While this shows improvement, the company will need to stay on its toes in order to exceed or even keep up with the slew of other listed crypto miners.
So, what differentiates Rhodium from its peers?
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Who Decides The Price Of Rhodium
The automotive industry and the law of supply and demand both have an impact on rhodiums price.
Due to its scarcity, rhodium is one of the most in-demand metals today. Due to mining strikes in South Africa, rhodium distribution has been difficult, especially in recent years.
Rhodium prices are also affected by recycling. The gap between supply and demand has been eliminated because rhodium is now recycled from catalytic converters.
Rhodium prices dropped as recycled supply increased earlier this decade. Since their lows in 2016, they have risen sharply and are expected to continue to do so.
Rhodium prices are also heavily influenced by the automobile industry. Demand for rhodium in this industry is higher than in any other, owing to its importance as the worlds largest consumer.
Rhodium prices are surging to yet another record high due to a widening supply/demand gap following the start of recycling.