Chart of the week: rhodium on the rise

When it comes to the precious metals group, gold, silver and palladium tend to hog the headlines. But another of the metals, having gained more than 30% this year, now costs at least twice as much as gold or palladium, notes Myra P Saefong in Barron's: rhodium. The spot price has climbed to a ten-year high of $3,250 an ounce.

The silvery-white metal is corrosion-resistant and used in vehicle catalytic converters. The latest boost to demand stems from Fiat, which needs to replace more than 800,000 catalytic converters in recalled vehicles. Supply, meanwhile, is extremely inelastic because rhodium is mined as a by-product of platinum; it rarely comprises more than 10% of the metal balance extracted from a mine. Prices should keep rising.

Viewpoint

Mark Littlewood, The Times

Article continues below

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Explore More

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.