Gold, Platinum and Rhodium Prices

[hhiusa]

Does anyone pay attention to the prices of precious metals? I noticed that the price of Rhodium is around $680 per Troy ounce. It never really recovered after the 2008 recession. It was valued around $10,000 per Troy ounce around August 2008. Platinum saw a high around $2,000/oz. It has fallen to $982/oz.

What would make the value of Rhodium fall so precipitously?

 

[dianajs]

I only look at Gold, to be honest, and I think Gold will continue rising.

 

[hhiusa]

I only look at Gold, to be honest, and I think Gold will continue rising.

Do you think it will reach its previous high of $1600? It is still trading at around half of what it was worth.

Rhodium has so many applications that people don't really think about. The variance in its price can affect all the sectors that use it.

 

[TexasRangersFan]

Do you think it will reach its previous high of $1600? It is still trading at around half of what it was worth.

Rhodium has so many applications that people don't really think about. The variance in its price can affect all the sectors that use it.

I am only aware of its use in catalytic converters.

But without knowing any specifics I would say that it dropped because a decline in demand from China, or maybe there was a decline in demand because it cost 2500 an ounce. When something gets that expensive they find different ways of doing things and find cheaper substitutes.

 

[hhiusa]

I am only aware of its use in catalytic converters.

But without knowing any specifics I would say that it dropped because a decline in demand from China, or maybe there was a decline in demand because it cost 2500 an ounce. When something gets that expensive they find different ways of doing things and find cheaper substitutes.

It has many uses. That makes sense; however, rhodium is one of the rarest metals on Earth. I don't think they have found any real alternatives. It is still used heavily in these areas.

Electronics - An electrical contact material due to its low electrical resistance. It has high corrosion resistance.
Electroplating
Medicine - mammography
Rhodium detectors - nuclear reactors
Gemology - cleaning and polishing jewelry and watches

 

[Erasmus]

What would make the value of Rhodium fall so precipitously?

I have rhodium hi-fi cables.... Anyway, the story is the same as all commodity booms and busts. High price brings immense investment into digging marginal holes in the ground assuming the price is sustainable, but guess what: it just drives a glut of supply and now you have a bunch of miners with sunk costs who are trying to justify continued mining on the basis of ongoing cash costs. That continues until at some point banks call in the loans (which they don't want to do as they know they're not backed by saleable collateral), miners go bust and supply returns to normal.

 

[dianajs]

Do you think it will reach its previous high of $1600? It is still trading at around half of what it was worth.

Rhodium has so many applications that people don't really think about. The variance in its price can affect all the sectors that use it.

Sorry for the late reply.

I have no idea, to be honest. I think that if it breaks above 1280 it will reach 1300, possibly slightly higher, but beyond that I am not certain at all.

 

[mlawson71]

Right now Gold seems more likely to reach 1200 again than 1300, but I don't know whether this is the end of the rally.

 

[dianajs]

Right now it's heading back to 1280, but we can't talk about a continuation of the bullish trend before it breaks above that level.

 

[FrancisBuckingham]

For 2016, the big bank believes gold prices will end at $1,050. It lowered its forecast from $1,195.