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Rhodium ready to rock?

Commentaries & Views

Let me caution that rhodium, and the rhodium market should in my opinion be understood prior to venturing. It’s natural rarity, scarcity in usable, and especially in investable form, are conducive to illiquidity and hence outsized volatility, as well as wide spreads between bid/offer, and high premiums .

That said - the purely technical picture as displayed on the below monthly logarithmic chart of ticker XRH0 (proxy for physical) looks very appealing from a contrarian (my) perspective.

Weekly chart:

If mean reversion is eternal then perhaps consideration for a trade to the top trendline and 200 week moving average is merited; or, your own independent fundamental analysis of the rhodium market would lead you to view some exposure to this metal as a very viable long term investment.

Thanks and good luck!

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