opinion

Rhodium ready to rock?

Kitco Media
By Jonathan Da Silva
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Kitco Commentaries
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Featuring views and opinions written by market professionals, not staff journalists.

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!

Kitco Media

Jonathan Da Silva

Jonathan Da Silva developed a passion for hard money and economics from a young age having been influenced by family who sought to teach me that "nothing is free", and the importance of intrinsic value early on. My interest in markets grew keener during the great financial crisis of 2008; leaning on family with vast trading experience, I began to self-educate on technical analysis and economics- drawing inspiration from the works of individuals like W.D. Gann and Adam Smith. I have been a proud member of the Kitco team since 2017 and hope that my writing inspires readers to consider an objective view of the metals, and the greater financial markets.

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