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.
     

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