Rhodium is heading for a total supply shortfall vs demand.
Updated
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.
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.
Note
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 monthsNote
my long term view brought a short term Return .....this is such a good story ...not enough market info on supply and demand , but it has been a exceptional run .Gold makes all the talk and Rhodium all the money
Trade closed: target reached
There might be still in the long term , you decide
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