The Worldwide Investor

The biggest winner over the past few years have been a little known metal known as Rhodium. While gold has been on the news every day now that it is up 300% , and oil up 600%, many people would be surprised to know that over the past 5 years, Rhodium is up an astonishing 2000%. The metal, which was trading as low as $380/oz, is now trading above $7,200/oz.

Rhodium is in the group of metals known as PGM or platinum group metals. It is a sister to the more well known metals of platinum and palladium, and is used in many of the same applications, such as catalytic converters. Platinum, which has been on a roll itself lately as South African producers were shut down earlier this week because of energy shortages, is the major metal that defines the properties of this group in terms of its chemical and mechanical attributes.

Not surprisingly, Rhodium’ supply is also dominated by South Africa, and its price was also dramatically effected by the energy shortage. Approximately 82% of the world rhodium supplies originates from South Africa, with the remaining supplies coming from states in the former Soviet Union. With South Africa struggling and little rhodium supplies known around the world, the price of Rhodium may continue to climb in the future.