If you invested $100 to rhodium last year, you would earn $250 today
Price of this silver metal grew 2,5 times in a year.
Rhodium rose by 63% since the beginning of 2020. Ounce of rhodium costs almost $10.000, which is almost 6 times more than same amount of gold. So far nobody dares to estimate when and whether rhodium price decreases. The precious metal was this expensive in 2009, until global economic crisis caused its decrease.
So, what actually caused the “rhodium fever”? Mainly growing rhodium demand from automotive industry as rhodium is used in vehicle’s exhaust system to capture carbon dioxide and nitrogen oxides. Automotive manufacturers currently represent 80% of global demand.
The current economic boom is also affected by stricter emissions regulation and so carmakers purchase rhodium in large volumes. The offer is not high enough and rhodium market is quite small. Its annual production is about 792,000 ounces that is hundredth of gold production. Yet, future of rhodium is hard to predict since electric vehicles have no catalysts and don’t need the metal.
