Rhodium and Palladium valuations

Discussion in 'Platinum' started by fishduck, Jan 22, 2020.

  1. fishduck

    fishduck Active Member Silver Stacker

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    Palladium and Rhodium have significantly gone up recently (especially rhodium) due to demand from automakers.

    From a fundamental perspective, demand is driven by automakers due to economic activity and low supply. It is also a pure industrial metal where demand is based on industry, which is different to silver as it has both of those qualities, for better or worse. Also, there is no commercial trading desks for these metals to short/manipulate these via paper.
    My question is, would the prices of both metals hold on a global recession? Because if history is any guide, the prices crashed during 2008-09. Would anyone here think that the prices would hold or even go up?

    What do you guys think? Do you think both metals are overvalued?

    With the price shooting up, why are central banks, large commercials not stocking up on these (automakers are) but gold (and sometimes silver) instead? Why don't they buy a bunch of palladium/rhodium, sell for a massive profit and use the funds to buy more gold/silver?

    If a global recession was to happen and prices crash, would anyone here be inclined to invest in these metals? Also, would anyone be buying these metals at these prices?

    So many questions to ask :)
     
  2. minimilled

    minimilled Active Member

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    The issue is emissions standards applied from the UN to major markets - EU, then China and in the next few months, India

    This is tempered by lacklustre auto sales

    The supply side of rhodium is hard to scale up due to it mainly being a byproduct, hence the squeeze.

    Who is to say investors are not stocking up? I think there is at least one ETF.

    Graph looks like a top anyway

    That said, it is tantalising to sit out for a few more months before the Indian Bharat 6 standard takes force.
     

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