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Thread: Why the Upswing?

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  1. #1

    Default Why the Upswing?

    I can't find one news article on what caused this past week's major increase in Rhodium pricing? What a mystery.

  2. #2

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    Quote Originally Posted by blackdog69 View Post
    I can't find one news article on what caused this past week's major increase in Rhodium pricing? What a mystery.
    and chances are that you will never find any

  3. #3

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    Whoever is in the know on this, does not want us to know. There is a good reason for this I'm sure we can all think of.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  4. #4

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    Quote Originally Posted by motocat View Post
    Whoever is in the know on this, does not want us to know. There is a good reason for this I'm sure we can all think of.
    1st time posting:

    maxwellsilverhammer is right - nobody is going to explain price movements to you honestly. Successful investing requires following the news everyday - and being aware of the spin, bias, editorial opinion etc. You have to read between the lines yourself.

    While I don't disagree markets are manipulated (ALL markets are subject to manipulation) in my opinion I don't think we need to get "overly conspiratorial".

    I say that because - supply-wise, Rhodium is actually pretty fun to follow, even without numbers or data. Essentially its an exclusively south-african product. Take a look back at some of the recent south-african data and news stories and with a little detective-work, sometimes you can start to construct a narrative that can help explain how we arrived at where we are.

    South Africa; general themes are that people's costs of living are rising. There is growing dissatisfaction and public sector workers are striking.

    If you look into the mining sector specifically, I think there were reports that the biggest mining union were looking for a 48% wage increase for its members. If negotiations fail and strikes occur = a potential disruption to supply. This will have a knock-on-effect on prices. If a wage increase is negotiated and a rhodium producer's operating costs increase, this too will apply an upward pressure on prices.

    The story will develop, we don't know how it will conclude, yet to explain our price-rises today, all we know for sure is that someone, somewhere, has been buying.

    Why?

    Perhaps its companies who have been following the same news stories have identified a potential risk to their supplies and have been 'stocking up' with a view to side-stepping any of short-term disruption? That's my best guess. Coupled with a global trend in rising emission standards, requiring greater rhodium loadings... cast your information gathering nets globally wide for rumblings in this area. Certainly in Europe, there has been a big green PR surge here recently.

    The most important thing - enjoy the ride! Its all just speculation. As an investor you are speculating on how other people are speculating now and in the future!

  5. #5

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    Quote Originally Posted by noggin View Post
    1st time posting:

    maxwellsilverhammer is right - nobody is going to explain price movements to you honestly. Successful investing requires following the news everyday - and being aware of the spin, bias, editorial opinion etc. You have to read between the lines yourself.

    While I don't disagree markets are manipulated (ALL markets are subject to manipulation) in my opinion I don't think we need to get "overly conspiratorial".

    I say that because - supply-wise, Rhodium is actually pretty fun to follow, even without numbers or data. Essentially its an exclusively south-african product. Take a look back at some of the recent south-african data and news stories and with a little detective-work, sometimes you can start to construct a narrative that can help explain how we arrived at where we are.

    South Africa; general themes are that people's costs of living are rising. There is growing dissatisfaction and public sector workers are striking.

    If you look into the mining sector specifically, I think there were reports that the biggest mining union were looking for a 48% wage increase for its members. If negotiations fail and strikes occur = a potential disruption to supply. This will have a knock-on-effect on prices. If a wage increase is negotiated and a rhodium producer's operating costs increase, this too will apply an upward pressure on prices.

    The story will develop, we don't know how it will conclude, yet to explain our price-rises today, all we know for sure is that someone, somewhere, has been buying.

    Why?

    Perhaps its companies who have been following the same news stories have identified a potential risk to their supplies and have been 'stocking up' with a view to side-stepping any of short-term disruption? That's my best guess. Coupled with a global trend in rising emission standards, requiring greater rhodium loadings... cast your information gathering nets globally wide for rumblings in this area. Certainly in Europe, there has been a big green PR surge here recently.

    The most important thing - enjoy the ride! Its all just speculation. As an investor you are speculating on how other people are speculating now and in the future!
    same thing that occurred before when it ran up to $10K

  6. #6

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    Quote Originally Posted by maxwellsilverhammer View Post
    same thing that occurred before when it ran up to $10K
    The motor industry is currently in limbo and I doubt it anyone wants to buy a large amount of Rhodium unless they have to.

    Most of them don't know whether to start switching to manufacturing electric vehicles, or staying as they are.

    Staying as they are will mean that they will come under more scrutiny to lower their emissions and they will need to purchase more Palladium and Rhodium.

    The price of Rhodium is relatively low compared to what it was at it's all time high and it only needs a couple of big buys to get things rolling.

  7. #7

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    Quote Originally Posted by maxwellsilverhammer View Post
    same thing that occurred before when it ran up to $10K
    And they did not think to stock up not long ago when it was under $700/oz? I remember thinking I would stocked big back then if I needed Rh for my product, but as one more concerned with buy-sell ratio (for trading Rh) I kept away. They really must have some very incompetent planners in the auto-industry -- or there are secrets we just don't know. I'll vote that it incompetence.

    Rhodium now at $3,330 an ounce. Lucky number, triple threes. 1/3 of the way to the moon, but I've already let it go....
    Last edited by motocat; 07-10-2019 at 02:03 PM.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  8. #8

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    Quote Originally Posted by motocat View Post
    Whoever is in the know on this, does not want us to know. There is a good reason for this I'm sure we can all think of.
    is rhodium used in missles? If so then thats it. Have u seen all the wars around the conflict and weapon sales.

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