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View Full Version : Rhodium the big question?



midiman
03-13-2009, 05:09 AM
It's at a low and has been static for a few months. While the automotive economy is in decline and mining cutting back you can understand why.

But if the demand for catalyst material increases again there will be no Rhodium around.

Prices could soar over the next few years. Or if the automotive industry find new ways to make Catalysts without PT and RHO then we could all be in trouble.

So is Rhodium worth heavily investing in? I have 3oz's already but I am thinking of getting another 7oz's.

Could we see Rhodium go over $10k over the next 5 years?

JPVIndustries
03-13-2009, 11:34 AM
I don't look so much at the time table but the price. We know it's not a question of can but when. With this said there is not much downside at $1000 - $1100/oz. Will it go down more? Sure, always a chance... but if it goes back up to $10k - 12k maybe in the next 10 years... very nice.

Sterling
03-13-2009, 12:15 PM
I think it's worth the bet. I don't know your financial situation but I look at it as making a good bet. A really good bet. I don't see the need for it going away(being replaced in cats etc), so to me it all rides on demand. I don't think it can go much lower and the upside potential is huge. I can only afford to bet a couple thousand but if a was a bigger fish I'd bet bigger. The upside and downside are the same- seems like you can really only loose the kitco spread amount when you cash out if it does nothing. I just have a hard time with the stagnation. I can't believe that there is so little action that the price never really even fluctuates.

chrisiden
03-13-2009, 12:18 PM
i think Rhodium is the "sleeping giant" and she will awaken when Platinum and Palladium start moving upwards...(when the automotive situation improves etc...)

midiman
03-13-2009, 01:39 PM
Yeah but this shi* rockets when it moves. I remember looking last year and thinking dam this shi* is trading at $9,5K an oz!!! :eek: It would be nice to own one oz even lol.

But no you can buy 10z for the price of an oz last year lol.

I would like to buy and extra 17oz beause it cant go much lower. The upside is that when it goes up who knows what it will peak at?

It could go over $10k this time so you would have earned 10X + on your initial investment.

Falcon7
03-13-2009, 02:25 PM
I was looking at it too but heard that it bottoms in summer around July. I'll be probably buying then. I don't think it will reach $10K anytime soon but even if it gets to the average $4K I'll be very happy. There is no sign of life in auto industry, yet, thus it is likely that rhodium will suffer a bit more down into the Summer. IMO it's a bit too early to get involved.

captbilly
03-13-2009, 05:07 PM
Rhodium is a tiny market that is very easy to influence. Someone with a little money and the will to do so could drive rhodium to insane values on the paper trading market. But I do wonder if anyone with actual rhodium, or in a pool, will ever be able to sell at that crazy paper price. If rhodium hits $20,000 per ounce on some exchange will anyone actually buy it for that price?

To a lesser extent I wonder if I would be able to sell my platinum at $3000 per ounce even if the COMEX price hits those levels. Would my dealer buy back at $3000, wondering all they while if he or his supplier is going to be stuck with a bunch of very expensive platinum right at the peak of the market?

midiman
03-13-2009, 06:55 PM
lol. But they are dealers and they are supposed to know what they are doing. I guess if they think they can make some money on it then they will buy at the price they think is right to make a gain.

Its an interesting one this metal.

AllthatglittersisPD
03-13-2009, 07:06 PM
I have 3.5 oz of rhodium purchased at 1800.00. I would be VERY happy if rhodium got to 4k. I don't even wish for 10k again, but if there was a shortage somehow, then it is feasible. It seems like there might be an oversupply out there due to the economy screeching to a halt so fast, but I am no expert. I am wondering why there has been no action at all in sooo long now. It doesn't seem to be going below the $1300 area anytime soon. Maybe in the summer, but who knows. I've looked at the historical charts and IIRC, there is not much of a pattern there. I'll go look again. As for the automotive industry, car sales are up quite a bit in China and India, and if people make money again in the spring stock market rally I'm hoping that they'll start buying cars again. I know a lot of people who are itching to buy a new car but are holding out. Eventually they will want to. Don't expect gas & oil prices to stay low either. When they go up this summer, maybe doubling, that's got to move some car sales. Then again, if things really worsen in the summer as predicted in the blogosphere, that doesn't give me too much hope.

I'm just hoping for a shortage somehow, and a big boost in auto sales. Anything's possible right? But man, just move a little bit, you know? This is getting old.

midiman
03-14-2009, 05:02 AM
The auto industry is in big trouble in the West and China are the main dons of industrial metals now.

My friend who works in the Plumbing industry says he can't purchase Lead for at a reasonable price. The only place her can get if from is China because these guys have been purchasing and stockpiling the stuff by tons.

I assume the same may apply to some of the other PMs. Until supply is low and demand rises.

NathanTurner
03-16-2009, 09:59 AM
I've been interested in investing in rhodium ever since I took a look at its chart a year or two ago and saw the dramatic price increases. How exactly would one go about investing in rhodium? Are they actually starting to produce bars and coins, or are you simply stacking bags of powder?

Lexus21
03-16-2009, 10:17 AM
I've been interested in investing in rhodium ever since I took a look at its chart a year or two ago and saw the dramatic price increases. How exactly would one go about investing in rhodium? Are they actually starting to produce bars and coins, or are you simply stacking bags of powder?

Seems most here buy into a KITCO pool that holds the metal there. So you get no physical metal to hold. Some here seem to trust it and others do not like not holding on to the metal

chrisiden
03-17-2009, 11:20 AM
looks like big sister Rhodium jumped up almost 18% in a day!
maybe this can be some good news for Platinum/Palladium since they are used in automotive;)

(the link below from JM only thinks 5% gain for the year... could they be wrong?

http://metalsplace.com/news/articles/25389/johnson-matthey-sees-2009-platinum-supply-up-about-5/

Sterling
03-17-2009, 12:09 PM
looks like big sister Rhodium jumped up almost 18% in a day!
maybe this can be some good news for Platinum/Palladium since they are used in automotive;)

(the link below from JM only thinks 5% gain for the year... could they be wrong?

http://metalsplace.com/news/articles/25389/johnson-matthey-sees-2009-platinum-supply-up-about-5/

Sometimes the jumps can be deceiving because you don't see when it has gone down before the jump. Sometimes it never moves and then opens lower the next day and has a little jump back to where it was before- making it hard to follow. I'd swear that sometimes it moves and then they reset the + or - %. Most of the time, when I look, the pool price that you pay has been around $1380. i think it's actually a little lower today so it must have gone down over night or at some fleeting moment before they posted the jump. Mysterious.

Grossomotto
03-17-2009, 12:18 PM
Flushing $10,000 down the toilet would be a start.


How exactly would one go about investing in rhodium?

NathanTurner
03-17-2009, 12:58 PM
Flushing $10,000 down the toilet would be a start.

If you invested when it was $10,000, then yes. Investing now at $1300 or so with the knowledge of where it has been and where it may go once the industries of the world are running at full steam would be a pretty good idea, in my opinion.

Solomon Brainiac
03-17-2009, 01:08 PM
It's at a low and has been static for a few months. While the automotive economy is in decline and mining cutting back you can understand why.

But if the demand for catalyst material increases again there will be no Rhodium around.

Prices could soar over the next few years. Or if the automotive industry find new ways to make Catalysts without PT and RHO then we could all be in trouble.

So is Rhodium worth heavily investing in? I have 3oz's already but I am thinking of getting another 7oz's.

Could we see Rhodium go over $10k over the next 5 years?

Rhodium may eventually get back to 5000 or more in the next five to seven years. Just depends on if the industrial market bounces back super strong. If not, it will fall even further. Everything is a risk but if I could find the physical without a large premium, I wouldn't mind having a few ounces myself.

Sterling
03-19-2009, 09:02 AM
Kitco's sell price is $1185 right now- lowest I've seen in a while, though it's possible I might have missed some momentary change in the past.;)

Sterling
03-19-2009, 09:31 AM
Kitco sell price at $1338 now.

chrisiden
03-19-2009, 11:37 AM
another $47!
what does this tell you all now?:cool:

Sterling
03-19-2009, 12:29 PM
another $47!
what does this tell you all now?:cool:

IMO that dip was a brief buying opportunity before it came back up. But did it really go anywhere? Kitco sell is at $1338. Maybe less than when you posted last about its movement. I'm all for Rhodium taking off but you should watch its actual price not the posted gains to determine its movement.

midiman
03-20-2009, 04:39 AM
Why is Kitco selling @$1338.00 when spot is $988???

The spot price is coming down but Kitcos sell price is rising?