Platinum, palladium and rhodium do not follow the price patterns of gold and silver. Unlike gold and silver, platinum and palladium prices can be hugely affected by external factors, including primarily the automobile industry (both metals are used to make catalytic converters in automobiles), and political, economic and labour factors, particularly in South Africa and in Russia.
Around 70% of the world's platinum, palladium and rhodium is mined in South Africa. This makes all three metals very sensitive to labour laws and political factors in the country. For example, around 2010 the South African government was seriously considering nationalising all of the precious metals mines in the country. This had a huge impact on metals prices. The price of palladium over a 1 1/2 year period nearly quadrupled.
Both palladium and rhodium have been moving slowly and steadily upward recently, and are worth considering as an investment opportunity today.
Palladium
Palladium has been steadily increasing since 2009. Since January, 2016, the metal has been on a straight and steady upward path, and the metal is currently trading around its 15 year high. The palladium price has recently broken above the previous two highs, in 2011 and in 2014. Given the strength in its movement, it is possible it will continue to increase in value in the near future.
When compared to gold, silver and platinum, it is clear to see that palladium is currently a potentially stronger investment opportunity within the precious metals market.
Rhodium
Rhodium is the most volatile of all the precious metals. Since the year 2000, the price of rhodium has gone from a low of $500/oz to a high of just over $10,000/oz. Rhodium is an incredibly scarce metal and the price of the metal can have huge fluctuations.
What makes rhodium a potentially good investment at the moment? The metal, like palladium, has shown steady and consistent gains in price over the last year. It has broken a two year high, and continues to show strength. The important thing to remember about investing in rhodium is its potential upside. At the moment, rhodium is trading at around $1,700/Oz, but with previous highs over $10,000/oz, the metal has the potential to move much, much higher.
