Rhodium is a rare and lustrous silvery-white metallic substance that is used as an industrial catalyst. It is also part of the family of metals referred to as the Platinum Group Metals (PGM).

As a precious metal, it is more expensive than gold, but typically 10-15% cheaper than platinum on the market.

Rhodium wearers and investors need to be aware that standard Gold and Platinum may not always hold the same value as Rhodium.

Rhodium is also worth a lot of money on the open market, making it one of the most expensive metals around. In this article, we will take a closer look at Rhodium and discuss why it is so coveted by many people. We will also explore some of the different uses for this precious metal.

 

Rhodium has many unique properties such as:

Rhodium can achieve a mirror-like finish without ever tarnishing or rusting. It is the only metal that will maintain this shiny finish in ultra-high temperature conditions.

It is also highly reflective in the ultraviolet light spectrum. This makes it ideal for use in all types of optical applications, including self-cleaning windows, telescopes, jewelry and even deep sky mirrors for astronomy research.

Rhodium’s ability to withstand exposure to corrosive agents without tarnishing gives it great potential in industrial applications.

It is used as a catalyst to improve chemical reactions, especially those involving hydrogenation, i.e., the process of converting unsaturated hydrocarbons into saturated hydrocarbons.

Who discovered Rhodium?

Rhodium was discovered in 1804 by William Hyde Wollaston after he found a new element present in the calx of tin.

After this, it was thought that rhodium was a supplement to platinum. Because both metals had such similar properties, they were often mistaken for each other and lumped together as one useful commodity.

 

Is Rhodium a precious metal?

Rhodium belongs to the group of precious metals. It has a bright, silvery appearance and is resistant to corrosion because it forms a thick layer of oxide on its surface.

Because of this oxidising property rhodium is frequently alloyed with other metals such as platinum, palladium or nickel for use in jewelry or silverware.

 

Is Rhodium expensive?

The high value of the rhodium is based on its scarcity rather than its properties, as it is very similar to the much more abundant metal platinum.

It has become an investment “item” because of increasing industrial demand for this rare metal, which exceeds the supply by four times. The prices are determined by the “rhodium” bullion market and fluctuate daily.

 

How much does one ounce of Rhodium cost?

Rhodium is usually traded by the ounce and the price varies considerably depending on its application (e.g. industrial, jewelry). 

Keep in mind that you might need to pay VAT or taxes on the purchase of Rhodium bullion, depending on the country where you intend to buy it.

 

Is Rhodium traded as coins?

A very small number of coins are made out of rhodium and sold at much higher than current spot prices because of their high numismatic, or collector value. These coins are often sold for $1000 to $2000 per troy ounce.

 

What is the melt value of Rhodium?

Melt values are based on the commodity futures exchange that lists this metal as referenced under code HRD in ticker symbol HG. The values listed are based on the December futures price for a troy ounce.

 

Where can I buy Rhodium?

You can purchase physical bars or coins of rhodium from specialty metals retailers.

Keep in mind that you might have to pay VAT or sales taxes depending on where you live and legal tender status if you buy Rhodium bullion.

 

Is Rhodium used for anything else?

Rhodium is mainly used as a catalyst in the chemical industry. It speeds up the process of converting hydrocarbons into useful chemicals and plastics, but has to be replaced frequently.

Rhodium catalysts are also crucial for the production of nitric acid, an important component of fertilizers and explosives. It is also used as a plating for various objects such as jewelry, silverware or utensils.

The demand for rhodium has increased sharply in recent years with the growth of the automobile industry.

 

What is the difference between rhodium and platinum?

Rhodium belongs to the same group in the periodic table as platinum. While rhodium is rarer than platinum, its properties are very similar to that of its sister metal.

It has a naturally white color and only becomes grayish when mixed with other metals such as iridium or nickel.

Palladium is another member of this family but it is less rare and therefore less expensive.

 

What are examples of items that have been made from rhodium?

Aerospace, chemical processing, glass production, laser technology and petroleum cracking were just a few of the applications that use this precious metal.

In addition to jewelry and silverware mentioned above, it is used for loudspeakers’ diaphragms, electric contacts, spark plugs and electrical switches.

 

What is the melting point of rhodium?

The melting point of rhodium is 3186 degrees Fahrenheit (1750 degrees Celsius). It has a very high boiling point at 5500 degrees F (2982 C) which means it does not melt under normal circumstances.

 

What are some other names for Rhodium?

Rhodium is also known as “White Gold” or “White Metal”, but many of its nicknames are derived from the Greek word “rhodon” meaning rose because it has a pinkish color when alloyed with certain other metals.

The International Mineralogical Association also lists it as a transition metal.

 

What countries produce Rhodium?

South Africa is the largest supplier of this white precious metal which represents 90% of the world’s supply.

Russia, Zimbabwe and North America are also significant producers. According to industry experts, other major producers will emerge in the near future as new deposits are found and mined, mostly in the U.S.

 

What is Rhodium plating?

This precious metal has a reflective surface that lends itself well to mirror-like coatings on other commodities.

The process of putting this coating over another metal is called “electroplating” which entails placing an object into a bath of rhodium, called the “electrolyte”. A current is passed through the object and it dissolves some of the metal’s atoms onto its surface. This process will be repeated several times until there is a visible metallic build up on the object.

 

The high melting point and extraordinary hardness of rhodium makes it useful for jet engine turbine blades, X-ray tubes and other high-temperature devices.

 

Anticorrosion

Anticorrosion properties make rhodium a key metal for microelectronics, semiconductors and circuit boards used in the aerospace industry. In addition to being non-toxic it is also completely non-magnetic. These properties add to its great appeal as an industrial catalyst.

In addition to being a valuable asset to have in your physical possession, rhodium is considered by some as the next best thing to owning gold or silver.

The main difference being that it does not tarnish and actually improves with age. It also holds a much higher value per ounce than either gold or silver. Rhodium’s price in the open market is influenced in large part by its role in industry.

A significant increase in demand, such as when it was used for coating mirrors in reflecting telescopes or optical equipment, will often lead to a rise in price. Industrial use has made rhodium more valuable than silver and roughly equal in value to gold.

This difference between the silver and gold prices has led to some instances where the rhodium market experiences shortages. These are short-lived, but can cause triple-digit price increases until supply is able to catch up with demand.

 

More industrial uses for Rhodium

Rhodium’s rarity also makes it popular for industrial use as a catalyst in making high octane gasoline, improving diesel fuel, producing polyester and creating super-strong steel.

Rhodium investors should note that these industrial uses, while generating high demand, do not contribute to rhodium’s unique physical properties which make it worthy of investment and more valuable than silver and gold on the open market. 

 

The Cons of owning Rhodium

The one downside of owning a physical rhodium asset is that it is not as easily divisible as gold or silver. When you think of investing in precious metals, you typically consider fractional increments which can be sold at will on the open market.

This allows for easier transactions and better liquidity of your investment. However, rhodium is currently only available in bulk quantities.

This is simply because it has not yet been widely accepted as a form of payment for goods and services. So due to its scarcity, buying smaller amounts than 1 troy ounce may prove difficult or impossible.

 

Since rhodium is not commonly owned by individuals and investors, there are no online marketplaces where you can buy or sell this asset like you would with stocks and bonds.

The easiest way to buy and sell physical rhodium is by dealing with a local dealer or broker.

Many firms will provide current quotes for bulk quantities of metal, but some may only offer the prices they paid previously for it.

This can be problematic because while Rhodium has historically held its value well over time, you may run into a situation where the price goes up significantly while you are trying to sell.

You will want to be sure and work with a reliable dealer so that you can get the best possible deal on your purchase and sale transactions.

 

Rhodium prices

Rhodium EFTs

Since Rhodium is a fairly new type of investment, the options of where to put your money are somewhat limited. There are some funds which can allow you to own shares in precious-metal companies or mining firms.

However, this may not be a wise option if you are not familiar with these types of investments and would like to hold the actual metal itself.

One possibility for rhodium investors is to purchase shares in an ETF (exchange traded fund). An ETF is a type of investment product which owns physical metals as part of its structure.

The advantage of this type of investment is that it allows you to have exposure to the price movement of rhodium, even if you are unable or unwilling to own physical metal yourself.

 

The Bottom Line