Rhodium Investment: The Rarest of Precious Metals Seattle WA

Rhodium's price has increased rapidly during the last five years, because of increased demand and shortened supply, but with a soaring price comes the worry that the bubble may eventually burst. Read on to know more about rhodium investment.

Joseph Hebert
trueNorth Financial Services, LLC
(206) 652-4314
1411 Fourth Avenue, Suite 1500
Seattle, WA
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Helping Clients Identify & Achieve Goals
Certifications
NAPFA Registered Financial Advisor, CFP®

Ben Jennings
SoundView Advisors
(360) 867-9890
1700 Seventh Avenue, Suite 2100
Seattle, WA
Expertises
Ongoing Investment Management, Advising Medical Professionals, Women's Financial Planning Issues, Retirement Planning & Distribution Rules, Insurance Related Issues, including Annuities, Estate & Generational Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®, CLU, CPA/PFS

Michelle Fait
Satori Financial LLC
(206) 320-9263
1001 Fourth Avenue, Suite 3200
Seattle, WA
Expertises
Tax Planning, Helping Clients Identify & Achieve Goals, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®, EA, MBA

Ethan Broga
Empirical Wealth Management
(206) 923-3474
1420 Fifth Avenue, Suite 3150
Seattle, WA
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Tax Planning, Retirement Plan Investment Advice, High Net Worth Client Needs, Hourly Financial Planning Services
Certifications
NAPFA Registered Financial Advisor, CFP®, MS

Eric Turloff
Turloff Financial Consulting, Inc.
(206) 842-1422
701 5th Ave
Seattle, WA
Expertises
Ongoing Investment Management, Retirement Plan Investment Advice, Tax Planning, Advising Entrepreneurs, Planning Issues for Business Owners, Cash Flow/Budgets/Credit Issues
Certifications
NAPFA Registered Financial Advisor, BBA, CFA, CPA

Therese Govern
trueNorth Financial Services, LLC
(206) 652-4314
1411 Fourth Avenue, Suite 1500
Seattle, WA
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Retirement Planning & Distribution Rules, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA, MBA

Frederic Kutscher
Kutscher Rhodes & Benner, Inc.
(206) 382-4414
705 Second Avenue, Suite 800, Hoge Building
Seattle, WA
Expertises
Estate & Generational Planning Issues, Ongoing Investment Management, Tax Planning, Charitable Giving - Trusts & Foundations, Advising Entrepreneurs, College/Education Planning
Certifications
NAPFA Registered Financial Advisor, BA, CFP®, JD, MS

Elaine Scoggins
Merriman, Inc
(206) 285-8877
800 5th Avenue, Suite 2900
Seattle, WA
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®, ChFc

David Lamp
BBJS Financial Advisors, LLC
(206) 682-4840
1501 Fourth Avenue, Suite 2880
Seattle, WA
Expertises
High Net Worth Client Needs, Alternative or Private Investments, Hourly Financial Planning Services, Planning Concerns for Corporate Executives, Ongoing Investment Management, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, CFP®

Karen O'Brien
trueNorth Financial Services, LLC
(206) 652-4314
1411 Fourth Avenue, Suite 1500
Seattle, WA
Expertises
Helping Clients Identify & Achieve Goals, College/Education Planning, Tax Planning, Ongoing Investment Management, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA

Rhodium Investment: The Rarest of Precious Metals

Rhodium, like palladium , is a member of the platinum metals group; it is frequently used to harden alloys of platinum and palladium. Rhodium is a key component in the in the world automobile industry. Rhodium investors have seen the metal's price increase rapidly during the last five years, but with a soaring price comes the worry that the bubble may eventually burst.

Some of rhodium’s principal uses are as a finish for jewelry and mirrors, in electrical connections and in aircraft turbine engines. It is also frequently used in catalytic converters in automobiles with internal combustion engines, which help to curb emissions. Lastly, rhodium can be considered the ultimate symbol of wealth—above and beyond gold or platinum—because of its price and rarity.

Rhodium doesn’t come cheap by any means, and its price has been steadily rising since 2003, according to Kitco Precious Metals, a metal dealer. In a five-year span beginning in 2003, rhodium has averaged a price of $3,224.51 per ounce, climbing higher than $9,000 per ounce between January and April of this year.

What has helped rhodium prices steadily rise is its use in catalytic converters, where—especially in diesel-powered vehicles—the metal has no substitute. Rhodium is expected to keep outpacing other precious metals in price as its need in diesel and non-diesel catalytic converters continues, according to the International Herald Tribune. Europe in particular has a high demand for rhodium, as 60 percent of all its automobiles are diesel-powered.

Rhodium is found in mines with other precious metals and platinum group metals
Rhodium is mined with other platinum group metals and precious metals The methods used to acquire rhodium are quite complex, as it is one of the rarest natural metals produced in significant quantities, according to ResourceInvestor.com. No rhodium-specific mine exists; rather, the metal is mixed with other metal ores such as silver , gold and platinum , and requires industrial extraction.

South Africa holds the world’s largest mines where rhodium can be found. Additionally, South Africa is the principal exporter of the precious metal, exporting 60 percent of the world's supply of rhodium. Annual world production of rhodium is estimated between seven and eight tons, according to Principal Metals Online. In comparison, the world production of gold was more than 2,250 tons in 2006, according to the United States Geological Survey.

Recent power shortages in South Africa have cut the rhodium supply, further driving up the metal's price. With demand heavily outweighing supply, South African mining companies have been forced to slow and sometimes even halt rhodium output, with no clear resolution to the crisis expected to come until 2012.

Expect world prices to continue to reflect the supply shortage. The increased cost of rhodium might also be felt in the automobile market, potentially driving up the price of catalytic converters, and in other markets that use rhodium.

...

Click here to read the rest of this article from NuWire Investor