Should I Buy Rhodium?

When you look around the world, there is a lot of uncertainty: the Chinese economy is cooling, oil prices have thoroughly racked Russia and most OPEC countries (with the exception of Saudia Arabia for now, as the Saudis have been intelligent about their reserves, but even they can’t go on forever at such low prices for oil). The Middle East is in permanent turmoil, mass migration threatens to blow up the EU and the U.S. has massive debt.

Times of economic uncertainty traditionally lead to spikes in the prices of precious metals and that’s certainly happening now. Platinum is at $964.50 and gold is at $1,230.24.

Gold in particular has always been a shelter with the theory that it’s never worthless.  If you have gold, you always have something.

Platinum is cheaper at the moment, so a lot of people will suggest buying that as it is selling at a discount relative to gold.

Both are industrial metals but gold is also a monetary metal.

Which should you buy? Maybe neither.

Consider Rhodium.

What is Rhodium?

It is a noble metal, which means that it does not corrode and resists acid.

Rhodium is primarily used for catalytic converters.

It’s also used to plate white gold for appearances and sterling silver to help prevent tarnishing.

It’s also used in some high-tech weapons system.

There are only two precious metals more rare than Rhodium – Osmium and Iridium.

And Rhodium comes almost exclusively from two countries – Russia and South Africa.

This is not something for rookie investors. Like any commodity the market goes up and comes down.  A few years ago, Rhodium was selling for $6,000 per Troy ounce.  Currently it’s selling for around $700.

Anyone who bought at $6,000 lost their shirt obviously. Precious metals are a volatile market and it’s hard to know exactly how to play it.

But it is possible to make money off Rhodium and it is possible to use it as a hedge against  economic collapse or World War III. For a long time that seemed very unlikely but with today’s instability it’s much more likely than it used to be.

Rhodium is of fairly limited use by itself – you can’t barter with it really. But as a secondary precious metal you could do worse.

You should ask a coin shop to order 1-ounce Baird Mint Rhodium bars and pay cash if possible.

You should only buy the .999 fine1-Troy ounce bars, again from Baird Mint (of London).

When things are looking up and cars are moving again, you can sell your Rhodium. If you’re lucky you can buy for $700 and sell for something like $6,000.

Just don’t count on it and always, do your own research.

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