In a shock to the investors, the world’s most precious metal Rhodium now is five times more costly than gold, reaching $8,200 per ounce last week (1 kg = 35.28 ounces). Touching the highest since 2008, Rhodium surged 32 per cent already this month and 225 per cent year on year. As per reports, Rhodium was at $7,975 an ounce on Friday (Jan 10). Stringent emissions rules have fuelled a multi-year rally and there's speculation that investors are also jumping in, betting that prices will climb towards a record.
As per International media, head of analysis and market development at Russia's MMC Norilsk Nickel PJSC Anton Berlin said, "Rhodium is subject to crazy volatility," and further stated that supplies are tight and speculators stepped up buying the metal after large industrial users secured volumes late last year.
One of the major reasons for the surge mainly owes to manufacturers having to use greater metal loadings per car to meet tightening automotive emission standards in many regions. Rhodium rallied 12-fold in the past four years, far outperforming all major commodities, on rising demand from the car sector.
As per experts, it is much harder to invest in rhodium than in other precious metals. It isn't traded on exchanges, the market for bars or coins is tiny compared with gold or silver and most deals are between suppliers and industrial users.
Gold prices on Monday fell Rs 236 to Rs 40,432 per 10 gram in the national capital on global selling and a stronger rupee, according to HDFC Securities. The precious metal had closed at Rs 40,668 per 10 gram in the previous trade.
Silver prices also dropped Rs 376 to Rs 47,635 per kg from Rs 48,011 per kg in the previous trade.
"Spot gold of 24 karat in Delhi was trading Rs 236 down on global selling and stronger rupee. The spot rupee was trading around 13 paise stronger against the dollar during the day," Tapan Patel, senior analyst (commodities), HDFC Securities, said.
(With Agency Inputs)