Exotic Precious Metal and How to Invest in it

Dubai, United Arab Emirates-Sunday 22 December 2019 [ AETOS Wire ]

We often read about gold, platinum or palladium and their investment potential in connection with slowing growth of global economy. However, according to the Gulf Brokers research, the true pioneer of price increase among precious metals is rhodium. In 2004, its value was around 500 USD for 1 ounce. Currently the price is moving around 6.000 USD for 1 ounce, according to the information by Infomine.com. Within the last year, the price increased by 150 percent.

But how to invest in a commodity which none of us has ever seen and some have not even heard about it yet? In the following text, I will be focusing not only on rhodium, but also on the specific steps that can be performed by a retail investor if he is willing to invest in such metal or just to speculate on price increase or decrease of such commodity in the market.

Investors can diversify their portfolio by investing in rhodium for example through buying futures contracts (buying or selling a particular commodity volume at a pre-agreed price at a specified agreed time in the future) and CFD contracts (i.e. contracts on price difference, the client does not physically buy the asset, but profits from such trade).  In practice, this means that you have to, via your borker and its trading platform, a specific instrument from the contract-for-difference (CFD) offer, in this case rhodium, and submits the required volume he wants to buy. The amount is shown in business units so-called lots (1 lot – represents the specific trade volume, for example 100 troy ounces, but that may be very different among trading instruments and merchants). When trading CFDs, it is important to remember that you are not an owner of the asset itself, in this case rhodium, but you only speculate on its growth or decline.

It is possible to buy rhodium physically from providers as a long-term investment; rhodium may be bought in the form of bricks in various sizes of 1 gram, 1 ounce or even 1 kilogram (depending on the seller’s offer).

Syam KP
Chief Analyst
Gulf Brokers

Trading is risky and your entire investment may be at risk. TC’s available at https://gulfbrokers.com/   


Ziad El-Maadawi,





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Graph - Rhodium Price (Photo: AETOSWire)

Graph - Rhodium Price (Photo: AETOSWire)

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