is rhodium a buy?

Discussion in 'General Precious Metals Discussion' started by millededge, Jun 11, 2016.

  1. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Do you know that Pt miners actually make more revenue from Rh than pt and pd? I'm talking about "revenue", not "margin". For every 1 oz of "platinum ore" mined and refined into pgm, the worth of pt in it is just 22% of the total pgm. The "by products" is worth more than 3 times of the metal mined. I just found out about this recently.
     
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  2. minimilled

    minimilled Active Member

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    This was promising news for Rh a day or so ago

    “Analysts say the supply/demand deficit for palladium will deepen this year as a result of a furnace explosion at an Anglo American Platinum plant, while the cutback will probably erase a surplus that had been expected for platinum.

    One bank, BMO Capital Markets, issued a report early Wednesday hiking its price forecasts for platinum group metals in 2020.

    Amplats, the world’s second-largest platinum producer, declared a force majeure Friday and cut its guidance for output of platinum group metals after an explosion resulted in the shutdown of Anglo Converter Plant processing facilities in South Africa.The explosion at a phase A unit occurred in February at the Waterval smelter. Original plans had been for a phase B unit to take over production, but water detected in the furnace meant the risk of another explosion, so the company shut down the plant, Amplats reported.”

    ““Our [forecasts for] rhodium prices for 2020 and 2021 have risen over 100%,” BMO said. The bank forecast $12,750-per-ounce rhodium this year, up 129% from a prior forecast of $5,563. The 2021 forecast was hiked to $8,625 from $4,000 previously. This metal was already priced high amid supply tightness.”
    https://www.kitco.com/news/2020-03-...n-PGM-supplies-BMO-hikes-price-forecasts.html

    BMO speculated future price prediction needs to be considered in terms of BMO’s failure to predict current price in the past and future, but also the unreferenced nature of their current quoted predictions, without qualification.

    I’d say that mine failure is a bullish counterweight to matters at hand, regardless.

    And also, it is hard to know precisely if you are not privy to the most important information.
     
    Last edited: Mar 12, 2020
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  3. leo25

    leo25 Well-Known Member Silver Stacker

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    Now that's a crash!!! :eek: Or is this an error?

    Screenshot_2020-03-16 RHODIUM 2012-2020 Data 2021-2022 Forecast Price Quote Chart Historical.png
     
  4. minimilled

    minimilled Active Member

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    https://www.kitco.com/market/

    It’s not showing up at Kitco yet. No Rhodium futures market from what I understand, so it comes down to physical ounce trading.
     
  5. leo25

    leo25 Well-Known Member Silver Stacker

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    Glitch it was, it seems nothing can knock Rhodium down.
     
  6. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Rhodium collapsed 40%. Capitulation near?
     
  7. minimilled

    minimilled Active Member

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    I doubt it - but at some time in the future people will know the full scale of this worldwide event and once the initial scary bits are done with, a new normal will set in and markets will stabilise

    Many scary bits are yet to come, so I think we’re not quite done yet with Rhodium.

    Rh had a big run up on a liquidity squeeze and no futures markets to control price. This now works in reverse.

    With the belt now relaxed on demand a lot of air has come out and it is still around 7-8 times what it was in 2016. As we know the biggest gains in the exponential function are in the last few doublings before a top

    It could be spectacular buying if we get down to a major low, so it is one to watch. One of the main mines is hobbled for now, so that puts a bit of an extra floor under it.
     
  8. leo25

    leo25 Well-Known Member Silver Stacker

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    Keeps going up. ICE cars aren't going away.

    RHODIUM 2012-2021 Data 2022-2023.png
     
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  9. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Mirrors bitcoin..a parabolic rise like this can’t be good. Makes me cautious about the stock market. But they say stocks are going to rise this year.
     
  10. StewyD32

    StewyD32 Well-Known Member Silver Stacker

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    This spike happened before the GFC. This and other factors are replaying the build up to another GFC. Might not be long before we find out.
     
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  11. TreasureHunter

    TreasureHunter Well-Known Member

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    Who the hell is going to buy it if the holder is a "small guy" and decides to sell? There are very few dealers and even fewer "fools" to buy at this price.
     
  12. leo25

    leo25 Well-Known Member Silver Stacker

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    Rhodium is an industrial metal, not an investment metal. Car makers are forced to buy at any price in order to meet global environmental regulations. It seems there is a supply shortage atm, so car companies have no choice but to bid for the limited supply in order to sell ICE cars.

    The rise in Rhodium price is a clear sign that electric cars for the masses will not happen for a long long time. So Tesla's valuation is a pipe dream.
     
    Last edited: Jan 18, 2021
  13. TreasureHunter

    TreasureHunter Well-Known Member

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    There were actually packaged Rhodium bars and powder available for investors. But I think even in the US it would be hard to re-sell.
     
  14. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    I actually looked at rhodium early 2018 when I was researching on whether to buy pm but couldn't find a way to buy then and also couldn't stomach the fact that it doubled from about $1000 a year ago. I generally don't chase. Anyway, just to show how undervalued platinum and silver really are.
     
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  15. leo25

    leo25 Well-Known Member Silver Stacker

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    Why do you think that? There is no supply shortage of silver.
     
  16. leo25

    leo25 Well-Known Member Silver Stacker

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    Yes you can buy Rhodium for an investment, but generally people don't. (partly for reasons you mentioned)
     
  17. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Is there a shortage for bitcoin?
     
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  18. TreasureHunter

    TreasureHunter Well-Known Member

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    If graphene won't kill silver, then electric cars and solar panels and other stuff will propel it possibly more than 10x its current price.
     
  19. TreasureHunter

    TreasureHunter Well-Known Member

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    I keep telling people that it's at most an ETF/derivative or poker chip. Worthless. Not a store of value, like Peter Schiff says.
     
  20. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    bitcoin has a market cap of $670 billion. Slv only $13billion. It’s a drop in the bucket. As for physical, forget it.

    https://coinmarketcap.com/
     

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