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Contributed Commentaries

Rhodium ready to rock?

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

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!

By

Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.