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Interesting, the notice said they were no longer issuing new shares, not delisting the fund. But that is good news, as it will reduce the ETFs influence on the price of physical rhodium. As the AfricaRhodium fund is only about 4 months old, I can imagine it's very large yet, my guess a couple thousand oz or so.Originally Posted by sandro1979
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Delisting is just a matter of time. Currently holdings are to high to close the shop but step by step DB buys back most of the holdings and at a certain point they will delist the ETC.
Looks like a typical short play in a falling market. As an ETC is not obliged to hedge physical I assume they hedged nothing at all and as the market is at a turning point right now they stop the play...
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The price of rhodium has gone up $100/oz since early February. I think we'll see some interesting action soon. Maybe the effect of the ETF closing its doors to new investment is starting to show.
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One effect can be that industrial users are forced to build up higher inventories of Rhodium to hedge their price risk.
I have read that most of DB Rhodium ETC buyers have been European industrial companies that used this ETC as hedge instrument. Now that's not possible any more. I'm not sure if it's possible for them to invest in the South African Rhodium ETC.
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Auto sales have been down, but it appears they are just starting to pick up now:
http://www.autonews.com/article/2016...o-13-month-low
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Here's a link to a plain vanilla piece that overstates the obvious:
http://www.energyandcapital.com/arti...vestments/5384
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From Heraeus:
High activity in a tight market for rhodium
Despite a comparatively quick price increase (+ 40 $/oz) - which we already anticipated in our last report - rhodium traded relatively calmly as the price moved mainly sideways since. Nevertheless turnover was at a very good level. Yet, the market as a whole is very competitive and many transactions are hard-fought. Accordingly, the margins are by trend at the moment more limited. Demand by industrial players is unabated and is coming from all industries that are active in rhodium. The automotive, chemical and glass industries have to be particularly mentioned. Due to the current level of interest rates investors continue to be on the buying side. Currently we see no major price movements in the near future
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http://www.platts.com/latest-news/me...odium-26443157
Banks are driving down the prices. Demand is quite weak but offers are aggressive. In a thin market manipulation is very easy...
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Actually sales are the highest in years, largely due to the price.
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Production way up:
http://www.metal.com/newscontent/917...-rising-output
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