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Pssst! Have You Heard About….?
When I was at the New York Hard Asset Investment Conference a few weeks ago, every hour someone would stop by my table, mention the word “rhodium”, and walk away. My interest piqued, I decided to look into this mysterious metal.
Rhodium (Rh) is in fact the rarest precious metal in the world, and is also the most valuable. The white metal is used primarily as a catalytic convertor by the auto industry as a much more efficient alternative to platinum and palladium (click her for my outrageously profitable calls on platinum at http://www.madhedgefundtrader.com/November_25__2009.html and palladium at http://www.madhedgefundtrader.com/January_27__2010.html). It is also used in jewelry, the plating of mirrors, and in neutron flux monitors in nuclear power reactors.
South Africa produces 80% of the world’s meager 25 metric tonne annual supply, and therein lies the angle. Rolling power shortages in the country has lead to the same intermittent mining stoppages that have affected the other metals.
On the demand side, you can count on a US auto industry that is boosting production from 9.5 million units last year to 15 million units over the next five years to maintain a firm bid. So far, then are running at an 11.5 million annualized rates this year. As a result, rhodium has nearly tripled in the past six months to $2,500/ounce, but is still well shy of its $10,000 record high.
Rhodium is not exactly easy to buy. There are no futures contracts, and most of the physical production is tied up in long term contracts. Since the metal is so unbelievably hard, it is difficult to work with, and only one company, the Cohen Mint, is offering .999 fine coins and bars (click here for their website at http://www.goldfortomorrow.com/ ). But expect to pay a hefty spread over spot, up to 20%, that is standard for a single source supplier.
A more liquid option can be found through buying the shares of the largest rhodium miners, which often appears alongside platinum, like Anglo American (AAUKY.PK), North American Palladium (PAL), or Stillwater Mining (SWC). And don’t tell anyone I told you.
To see the data, charts, and graphs that support this research piece, as well as more iconoclastic and out-of-consensus analysis, please visit me at www.madhedgefundtrader.com . There, you will find the conventional wisdom mercilessly flailed and tortured daily, and my last two years of research reports available for free. You can also listen to me on Hedge Fund Radio by clicking on “This Week on Hedge Fund Radio” in the upper right corner of my home page.
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The real importance of Rh stems from its unique catalytic properties in chemical and fuel production and fuel refining from crude stock. It is also the most resistant of any metal to strong acids and high T which gives it a range of application in solid state chemistry. It would never be widely used in auto catalytic converters since Pd and Pt do the job just as well at lower cost and scientists will likely develop PtFe and PtNi nanosize sustitutes (my area of research). So, given the authors pathetic knowledge of why and how this metal is used I would be very reluctant to follow his "tips". As all traders know, tips are for waiters.
I've done my penance for once buying PAL. Not going there again.
those commie ballerina coins are nice though. i've got a few of those sitting around. might actually flush out that whole set. but for the most part, yeah.
Look at the 30 min Copper Chart, nice head and Shoulders building, may see sub 2.85 tomorrow.
Palladium daily chart looks bullish atm.
http://stockmarket618.wordpress.com
I can't get excited about a 1oz jar, saturated foam insert of Rhodium @ $2,500/$2,800.00 oz spot..................esp since I cannot forsee a Global economic upturn for much of anything now, except Gold, food, and oil.
Platinum holders are going to be( I fear) in a pickle also.
Palladium, and other metals are coming online, that are repalcing Platinum.That, once accomplished leaves it strictly a jewelry metal..IMHO.
As mentioned earlier, the EURO daily chart is giving bullish signals but the important weekly chart remains bearish.
The proprietary indicators I use in my technical analysis can identify trend changes before they occur.
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
Tyler, Marla, or whomever, can you finally ban this damned troll? He/she never posts any relevant comments, just this same spam and link.
Pretty please?
akak
if you're referring to myself, i do not post the same content.
why don't you take advantage of my analysis ?
other readers have.
perhaps you don't trade ?
Hey, Scary Clown Dude, I trade! ...fiat currency for gold and silver.
Got some charts for that?
RockyRacoon
what charts do you want ?
PM's ?
I get those for free from a dozen sources all over the Internets. They all look the same.
From a quick search in miningalmanac.com, here are a few companies with platinum group resources and/or production:
http://miningalmanac.com/Eastern_Platinum_Ltd_ELR/ (official 43-101 estimates for rhodium - Canadian standards)
http://miningalmanac.com/Platina_Resources_Ltd_PGM/ (official estimates for rhodium - Aussie standards)
http://miningalmanac.com/First_Quantum_Minerals_Ltd_FM/
http://miningalmanac.com/Aquarius_Platinum_Ltd_AQP/
http://miningalmanac.com/Stillwater_Mining_Company_SWC/
http://miningalmanac.com/North_American_Palladium_Ltd_PDL/
http://miningalmanac.com/PolyMet_Mining_Corp_POM/
http://miningalmanac.com/Anooraq_Resources_Corp_ARQ/
http://miningalmanac.com/Platinum_Group_Metals_Ltd_PTM/
http://miningalmanac.com/Noront_Resources_Ltd_NOT/
http://miningalmanac.com/Duluth_Metals_Ltd_DM/
http://miningalmanac.com/Caledonia_Mining_Corp_CAL/
Did a double-take when I read "booming auto industry". Of course this could be your little joke, because implosions can also go "boom". But somehow I doubt it.
You must have a lot of rhodium options to make you talk such utter drivel.
from 11.5 to 15mil? how about from 11.5 back to 9???
BTW, please remind me, do the electric cars like Leaf need catalytic convertors at all?
True, electric cars don't need catalytic converters, but they do use a lot of electrical connectors in the wiring and batteries. Rhodium is often used as part of the plating on high-reliability connectors. Of course that means GM probably won't be using it much.
+1 on GM.
Actually, electric cars "need" catalytic converters if the government says they do. They'll think of some way to kill that industry too. I can't wait until the gubmint requires electric car owners to buy carbon offsets because of the impact on the environment from increased coal burning for power production to support them.
All that glitters is not gold. Rhodium has uses beyond the auto industry, and if China is consuming large amounts of this element, perhaps we should ask the bean counters and spooks to check on their military infrastructure.
I dunno about rhodium, but a "neutron flux monitor" i something I gotta have. Is there an ap for that?
I believe that kitco.com also has a new physical rhodium product. You can buy it as sponge in a sealed tamper-proof container. 1 oz. containers as well as 10 oz. +/- $2600 per oz. which is above spot.
https://online.kitco.com/bullion/completelist.html
Rhodium is not money... Its just another way to go long GM. Jon Nadler has been peddling this.
"on the demand side you can count on the US auto industry that is boosting production from 9.5 million units in 2009 to 15 million units in 2015". Is this a joke? Puke and piss coming from my ass. 15 mil units are 2006 numbers. Good times right around the corner. This is funnier than Ben dover.