money and business
A report by “Bloomberg” agency shed light on rare and expensive minerals, and said that rhodium has jumped 31% since the beginning of this year to approach the level of $ 8,000 an ounce recently.
The agency added that the price of an ounce of rhodium was at the highest level since 2008, and that its price exceeded gold by five times, pointing out that the price of the metal had risen about 12 times during the past four years.
Bloomberg noted that stricter emissions rules have boosted demand for the metal from the auto industry, as investors bet that rhodium will continue to rise.
“The main driver at the beginning of January was the actual demand from Asia, which may also be linked to cars,” said Andreas Daniel, of the refining company Heraeus Holding GmbH.
Regarding the uses of the metal, “Bloomberg” stated that rhodium is mainly used in mechanical catalysts, and the metal is distinguished by a small market.
It is also difficult to invest in rhodium compared to other precious metals, as it is not traded in the stock exchanges and most deals between suppliers and industrial users are done directly, and the production of this global metal equals about a tenth of the production of platinum or palladium.
The high prices of rhodium are good news for producers in Russia and South Africa, who make up most of the global production, as Russia produces 69 thousand ounces annually out of 757 thousand ounces produced in the world, while South Africa production is about 618 thousand ounces.