Prices for the world‘s rarest precious metal — rhodium — have soared 32 percent since the start of 2020 and peaked since 2008. On Friday, January 10, the cost of an ounce of metal was a record $ 7,975. Writes about it Bloomberg.
In recent years, rhodium prices have risen amid demand from the automotive industry (precious metals are used in catalytic converters). So, over four years, the price of metal has increased 12 times. “The main driver of price increases in early January was the demand for rhodium in Asia, which could also be related to the automotive industry. Demand entails even greater demand, as a result of which the effect on the unregulated market can be significant, ”said Heraeus Holding trader Andreas Daniel.
In early 2020, the price of rhodium also received a new incentive, the agency said. They became a troubled situation in the Middle East. In early January, the U.S. military launched a missile strike on a territory near Baghdad’s airport, killing one of the most influential Iranian statesmen – General Kassem Suleimani. In response, Iran launched rocket attacks on US military bases. Against the backdrop of these events, investors turned to precious metals in search of a “safe haven” for their capital.
Analysts do not rule out that rhodium prices will rebound. Due to the rarity of the metal, its value is subject to significant fluctuations with changes in demand or supply. “Rhodium is subject to crazy volatility,” said the head of the market analysis and development department “Norilsk Nickel” Anton Berlin. The company accounts for about 10 percent of the world‘s total rhodium production. However, analysts still do not exclude that in 2020 the cost of the metal will soar to 10 thousand dollars per ounce and break the 2008 record.
A similar situation has developed with another rare precious metal – palladium – which is also used in the automotive industry. In January, its value has reached historical maximum and amounted to 2121 dollars per ounce.