Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.I published a short post on rhodium during the holidays – a time when many readers were away. I have therefore decided to run it again in updated format.
I have been fairly vocal about my bullish view on precious metals for quite a while. And with yesterday’s surge in prices, I am quite content to ride my positions. However, adding to one’s holdings at decent prices has become problematic as most of the corrections have been shallow, not really affording proper buying opportunities.
Days after Canada’s central bank governor advised young people living in parental basements to seek unpaid work and Bank of Nova Scotia and SNC-Lavalin Group Inc. cut jobs, the nation’s labor market faces more gloom with a report today expected to show employment losses.
Statistics Canada’s report due at 8:30 a.m. from Ottawa will probably show employers cut 5,000 positions in October, the fifth net loss this year, according to the median forecast in a Bloomberg News survey of 25 economists.
Mining companies will meet at the industry’s biggest conference next week under the darkest cloud in a decade, but a recent bounce in the price of gold and silver and a trickle of investment and acquisitions are starting to pierce the gloom.
The renewed optimism may set up a fierce competition for funds among small explorers who have woken from years of hibernation and now appear to be gang rushing a small, wary group of investors.
By Katchum:Rhodium is a metal in the platinum group metals group (PGM) that nobody really knows about in the investor world. It isn't traded online through futures, while gold, silver and platinum are. You can only buy this metal physically through dealers which makes this metal perfectly unmanipulated.
By Richard Bloch:Every once in awhile you read an article about investing in rhodium, which is one of the platinum group metals, probably the third most well-known PGM after platinum and palladium. I suppose that investors might look at a chart of rhodium prices and wonder if it will soar past $10,000 an ounce again. It could, but that doesn’t make it a good investment idea. The market is very thin and rhodium is not a commodity suitable for most investors. There are three reasons why.