williamhenry
Long

Rhodium is heading for a total supply shortfall vs demand.

JSE:ETFRHO   1NVESTRHODIUM ETF
Rhodium is not something traded widely and something not studied closely. What is clear is that the market is in deficit and not something that can be done to correct this . The bulk of Rodium is mined is South Africa . It is mined as a byproduct from Mining PGM's as 1 to 11% of PGM's (basket of metals). Currently South Africa mines 70% of the world Rhodium . none of this come from opencast mines and nearly all of its production come from conventional narrow tabular ore bodies.

South African investment into new products has not been there since 2008 and many mines now has a declining production profile . The world space has new new projects in the pipeline and there is now doubt that the market demand will run out of supply . Alternatives will take time. So this is the start of one of the biggest supply deficits seen in the precious metals market in history. The short term is under pressure and no one can predict the market short . South African production was in complete shutdown as all mines was closed ...producing rhodium so maybe lack od demand has been balanced... Although there is fear of a second wave restricting the demand , South African mines is now only operating at 60% capacity and the South African Covid cases is on a exponential up ward trend ..peak projected at around September . this will keep supply constrained . The next 12 months will be interesting but what is unavoidable is the supply shortage ... The entry point for Rhodium might be something to consider after doing your own research. My take is will will make a investment Now and again in the next few months. The price will go as high as $ 16 000 /Oz within 3 years .....please share with me your ideas if anyone is following this market.
Comment: Although my long term position has not changed the next 12 months to June 2021 might remain under pressure and potentially can cut back to $5800 /Oz ..So those that is not long tem investors might want to reconsider there position in the next 12 months

Comments

Very interesting asset, interesting fundamentals with an upward trajectory spike anticipated , most likely post Covid-19 era
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Hi, yes I agree with you. Also bear in mind the demand for it has been minimal, as one of its main uses is in the automotive industry for reducing emissions. So Rhodium as incredible potential, as we strive for cleaner greener lifestyles. With automotive manufacturers pulling out of Spain and other countries, it's been left in limbo. And as you say once sectors start opening further there will be a huge demand. The other valid point you made is the lack of research on Rhodium, there could very well be other industries that have use of it. And if I'm not mistaken, it's not exactly an element where there is an abundance of which will further add to its value. I predict around October if not slightly before, it will be on a sharp rise again.
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williamhenry Rickochet85
@Rickochet85, interesting space lets watch it
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