Home>News>Economy>Rhodium risks updating its maximum bar set in 2008

Rhodium risks updating its maximum bar set in 2008

Rhodium risks updating its maximum bar set in 2008

In January, the rhodium volatility increased. Its value has risen by more than 30% and reached its highest level since 2008. As of January 10, the cost of metal was $8,000.

Metal is used to create automotive catalysts. Manufacturers place the device in the exhaust system of the car in order to reduce harmful emissions into the atmosphere. Due to the ever-increasing demand from automakers over the past four years, rhodium has risen in price twelve times and overperformed raw materials. Alongside with, rhodium is characterized by high volatility. This was told by an analyst at Norilsk Nickel Anton Berlin to Bloomberg. He also noted that speculators significantly increased the number of purchases, while industrial enterprises stocked up metal for future use.

In early January, the market for rhodium was warmed up by Asia. Andreas Daniel, a trader at Heraeus Holding, said that massive purchases in an unregulated market triggered an increase in value that doesn’t occur more than once every ten years. Also among the reasons for the boost in price of rhodium are a general increase in interest in precious metals from investors who are looking for assets with a low degree of risk due to tension in the Middle East. For example, palladium rose in price by 9%.

Afshin Nabavi, vice president of MKS PAMP Group, suggested that rhodium could update its maximum mark and exceed the cost of 2008, when it was $10,100. That year, automakers were forced to replace metal with palladium and platinum.

This type of metal is not traded on exchanges, as it has a too small market compared to others. Therefore, investing in it is quite difficult. A significant proportion of transactions for its purchase is carried out directly between suppliers and manufacturers.

14.06.2021, 02:35
Dutch Official Predicts Crypto Market Crash, Says ‘the Netherlands Must Ban Bitcoin Now’
25.08.2021, 08:05
As Industrial Commodity Rally Cools, 2 ETFs To Buy Into U.S. Infrastructure Effort
26.05.2021, 17:05
Biden Administration Looking to Increase Cryptocurrency Oversight to Protect Investors, Prevent Illicit Transactions
26.10.2021, 20:00
Finder’s Panel of Fintech Experts Predict Ethereum Will Reach $5,114 This Year, Over $50K by 2030
11.05.2021, 21:30
E-Commerce Giant Ebay Now Allows NFT Sales Citing ‘Massive Wave of Attention’
12.11.2021, 07:00
Analysts: Lack of Trust in Nigerian Government an Impediment to CBDC’s Success Prospects
19.08.2021, 04:00
Institutional Players May Dominate Bitcoin Trading Within 3 Years - Report
04.08.2021, 02:12
Trump-backed coal lobbyist wins Republican congressional primary in Ohio