Investing in precious metals is proving to be increasingly attractive. Not only do they have unquestionable profitability, but they offer both solid protection against inflation and market volatility.
No crisis for rare metals. Nowadays, the demand is exploding due to their use in the electronics industry. However, their quantity on our planet is limited, which guarantees this specific market an almost guaranteed increase in the long run.
Among these precious metals is rhodium, which is mainly used in the automotive industry. Still little known to the general public, it is nonetheless one of the rarest and most sought-after metals: its price is 10 times higher than that of gold.
The financial forecasts for this raw material all look very attractive due to its very limited quantity in our basements.
But what exactly is rhodium? And above all, why and how to invest in this precious metal? We tell you everything in this article.
What is Rhodium?
Rhodium is one of the most expensive metals in the world. It is mainly used in industry, chemistry and jewelry.
It is one of the platinum metals, i.e. the metals of the platinum group. Includes palladium and platinum.
Discovery of rhodium
It was discovered in 1800 in South America, but it is in South Africa that 80% of the annual production is extracted. There are currently only 5 minutes dedicated to mining this metal.
It is one of the rarest metals on the planet, which explains its high price.
A specific use
In fact, the main use of rhodium concerns anti-pollution devices for motor vehicles. Unfortunately, when stocks of new cars are at their maximum, production stops and therefore the consumption of all raw materials.
A volatile course
But like all rare metals, its limited amount on our planet makes it a safe bet.
It can sometimes suffer sharp declines, as it is very sensitive to demand unlike gold. However, the price of rhodium continues to rise, breaking records every time.
This is what encourages more and more people to invest in this material.
Why invest in rhodium?
As mentioned earlier, rhodium is an attractive investment because its quantity on earth is limited, while its demand is only increasing.
An explosive rhodium course
Its value is still largely underestimated, given the few existing deposits and the difficulty of extracting it. According to some experts, it should be worth at least 15% more than its current price. Its price is 10 times higher than that of gold, while it is much rarer.
In 2021, the price of rhodium broke all records, reaching 790,000 euros per kilo. Between May 2020 and May 2021, its price doubled. However, the shortage of this metal is announced and a production deficit is expected in the coming years.
A scarcity that should only accentuate this growth phenomenon.
Automotive: a lively sector
Currently rhodium is mainly used in the automotive industry. It’s a vibrant industry, as demand is steadily increasing, particularly due to new markets throughout Southeast Asia.
At the same time, pollution has become a very serious topic around the world. Governments now regulate new vehicle regulations. China, for example, has adopted new standards to solve pollution problems, which are very important in the country.
Likewise, demand is increasing in the chemical, glass and optical industries.
Rhodium should therefore continue to be highly sought after for years to come.
An unknown market
One of the advantages of rhodium is that it is still an unknown market.
In fact, it is not easy to access this raw material which is traded on a few world scholarships.
Also, unlike gold or silver, it is a difficult metal to work with. Physical possession is therefore in the form of bars, which incur additional costs of around 20%, or in the form of powder.
Finally, the small size of this market and its high volatility make it a niche sector, where few investors venture due to lack of knowledge.
Sure, rhodium is a special market, but that’s also what makes it attractive and financially attractive.
With a little education, you’ll find the information you need to enable you to invest properly in this promising commodity.
However, the best thing is to be assisted by professionals, who will be able to provide you with valid advice on your investment.
Use an online broker
To invest in rhodium, relying on an online broker expert in precious metals is a good solution. It will allow you to easily access this particular market and share its experience with you to invest profitably.
The example of Maugenel-conseil.com
Maugenel-conseil.com accompanies you in the purchase and resale of precious metals. The site connects buyers and sellers to allow you to invest in all types of precious metals such as rhodium.
For this, the site offers you a real-time trading platform. Buy and sell rhodium or other metals, overnight, with no admin or fees.
Don’t hesitate to ask for advice. The experts of these online sites are there above all to support you and help you make the best investments according to your needs. Even if you think you’ve chosen the best deal, it’s best to seek the advice of a professional.
At Maugenel-conseil.com you will find a dedicated consultant, available at any time to assist you. You will thus be able to avoid certain pitfalls and avoid the classic mistakes that most people make when investing in precious metals for the first time.