Rhodium rocks on

CityPress - - Business - – Bloomberg

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.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.