Rhodium rocks on
The best asset over the past week is a metal you’ve probably never heard of: rhodium. One of the rarest precious metals, rhodium soared 29% in the five days through to Wednesday, beating every single stock in the MSCI World Index.
While the market for rhodium is tiny and doesn’t trade on an exchange, a fund that holds the physical metal rose 23% since July 9, and producer shares rose.
Low prices are attracting companies that use rhodium for catalytic converters, according to Jonathan Butler, a preciousmetals strategist at Mitsubishi in London. The metal hit an 11-year low earlier this month on forecasts that South Africa, the biggest producer, is increasing production at the fastest pace in two decades.
The five-day advance was the biggest in six years and the metal fetched $1 000 (R12 382) an ounce on Wednesday. Before the rise, it had fallen almost 50% since August last year.