When it comes to the subject of precious metals, you will probably think that Gold and Silver tops the list. The fact is, we’re not even scratching the surface of which precious metal is the most valued.
To give you a quick example, Rhodium hits a new record for it trades north of 13,000 dollars per troy ounce. But what’s the future for this asset?
Perhaps to a layperson, rhodium is a strange material. But quietly, it’s among the biggest trades any trader can be in right now. That is after the material sees a price surge of above 30 percent this year. This material is being used as a catalytic converter, a part of the exhaust system of any vehicles which is responsible for reducing pollutants and toxic gas emissions. As per S&P Global Platts, about 80 percent of demand for palladium and rhodium is contributed by the automotive industry worldwide.
Luckily, South Africa has at least 80 percent of all the materials mined within its border.
One reason why the price had a big jump was because of its rarity. Yearly production for rhodium is averaging at 30 tons. To put it in context, it is like gold miners digging up between 2,500 and 3,000 tons.
This can be considered as Rhodium’s little brother. Believe it or not, palladium is rarer than platinum and it is being used in bigger quantities for catalytic converters. As a matter of fact, the demand for metals that are used as catalytic converters is forecasted to grow steadily, mainly because of the consistent growth of automotive sales in Asian. Thing is, the increase of electric vehicles that don’t use catalytic converters may hamper palladium’s demand and price.
Part tradition and part durability, gold is one of the versatile commodities the world has. Used mostly in jewelry but many don’t know that gold also plays a vital part across aerospace and electronics because of its conductivity and durability. You may not see it, but gold is everywhere.
Almost every society in the world both in the past and today used gold in different purposes like currency, symbol of wealth, power or prestige. Whether it’s awards, wedding rings or money, there is the presence of gold.
If you are thinking of making an investment, then these precious metals may just save you. However, if you’re thinking of other alternatives, you may check out crypto market marketing. While cryptocurrencies are not tangible assets as what mentioned above, it can yield high return if done right.