Rhodium Nitrate: A metal more precious than gold
by Mashum Mollah Investing 03 July 2019
Rhodium Nitrate is a precious and mysterious metal. Rhodium is a rare, hard, silvery-white metal and it is found in the minerals of platinum and, in alloy with it, is used as a catalyst. The metal, that was once the most precious in the world, is nowadays much rarer than gold. After a very high peak in 2008, Rhodium prices fell drastically but will return to very high levels in the future.
One of the most precious metals, Rhodium Nitrate has a silver tinge and often appears to be completely white. In terms of its properties, it has a lot of benefits in terms of withstanding corrosions and rusting. Due to its silver-white appearance, Rhodium Nitrate is commonly used as a polish finish in the jewelry industry. It also used in the manufacture of high-quality glass.
In terms of industrial uses, the metal finds its importance in the aviation industry. Due to the high heat quotient in the engine components of an aircraft, Rhodium Nitrate is used as an electrical connector along with platinum. It also finds usage in the automobile industry, with catalytic converters in cars being made entirely of Rhodium Nitrate.
One of the main reasons why Rhodium Nitrate is increasing in value every day is because of its use in technologically advanced industries. From deep sea drilling to space explorations, Rhodium Nitrate’s physical and chemical properties make it an attractive option to push the boundaries of what is possible.
The main sources of supply
Rhodium Nitrate is produced largely in South Africa, which accounts for almost 60% of all the supplies in the world, while Russia is the second largest producer, although its sales are volatile and subject to political intervention. Rhodium production is extremely limited: Only 25 tons per year worldwide. To make a comparison, more than 2,000 tons of gold and more than 220 tons of platinum are extracted each year.
Rhodium prices and quotations
Rhodium is an extremely rare metal. There are no pure rhodium mines, but it is obtained exclusively as a by-product of platinum and nickel extraction activities. This means that the global supply of rhodium cannot respond to changes in demand. So, if the supply is scarce, the prices will increase drastically while the descent will be just as fast if the demand is lower than the offer.
The extraction process is not simple and requires highly complex tools and production techniques. There are very few businesses, which possess the expertise to extract pure Rhodium Nitrate from a process of extraction. However, the good thing is that this keeps the prices and demand for rhodium always at a profitable best.
Investing in Rhodium Nitrate
As already said, Rhodium is an extremely rare metal. There are fewer than ten rhodium mines in the world, most of which are in South Africa, which provides over 80% of world demand. Investing in Rhodium is therefore quite difficult, not because there are no stock exchanges where futures, ETFs or other derivatives are listed, but because prices are very volatile. In 20 years, the listing of Rhodium has touched a minimum of 760 dollars and a maximum of 10,010 dollars.
So, in the case of rhodium nitrate, as well as other precious metals, it is necessary to always ask information to specialists in this sector. Faggi is a company that deals with these topics every day and has many years of experience. Do not hesitate to contact them. You will get a better idea of how the industry works, and what can you expect from your investments in Rhodium, a couple of years down the line.