Except for occasional market fluctuations, rhodium bullion is the most expensive precious metal in today's economic climate. With important technological discoveries and advancements requiring the use of the platinum group metals (PGMs), rhodium prices have soared to staggering levels in the past five years. The history of rhodium, whose chemical symbol is Rh and atomic number is 45, stretches back two hundred years to the beginnings of the nineteenth-century, another exciting time of scientific achievement in several different fields. British scientist William Hyde Wollaston (1766-1828) discovered rhodium from platinum ore about a year after discovering palladium, another platinum group metal. Wollaston wrote in his notebook on June 14, 1804 that he named the metal after its "rose-coloured residue." The Greek word "rhodon" means "rose." The announcement of the discovery was made to the Royal Society ten days later on June 24, 1804. Wollaston himself developed a palladium-gold alloy that was used in sextants and a rhodium-tin alloy that increased the durability of the tips of pen nibs. The scientist also made advancements in such burgeoning fields as electricity, optics and photography, astronomy, and mineralogy (just to name a few). The Geological Society of London established the Wollaston Medal in 1831 to honor the annual outstanding achievement in geology. Though first made of gold, the medal has been made of Wollaston's other discovery, palladium, since 1930.
Like other precious metals, rhodium bullion is usually measured in troy ounces, a measurement which is slightly heavier than a liquid ounce. Like platinum and other platinum group metals, the hard, silvery-white rhodium is resistant to corrosion and has invaluable electrical conductivity properties. It's used as a hardening agent in platinum and palladium alloys in such applications as aircraft spark plugs, laboratory crucibles, a filter for mammography systems, optical instruments, and autocatalyst applications. White gold and platinum jewelry are enhanced by the reflective white surface that rhodium plating provides, known as rhodium flashing in the jewelry business. The finish is also used for mirrors and search lights. The people at the Guinness Book of World Records have found the most imaginative use for the "rose" metal. In 1979, they presented a rhodium-plated disc to Sir Paul McCartney for his songwriting and recording achievements. They just didn't think an award made from mere silver or gold was worthy enough for the former Beatle.
A small quantity of rhodium bullion comes from Ontario's copper-nickel sulfide mining area in the Sudbury region. Though the amount is small, the cost of recovering the bullion is relatively low because so much nickel ore is processed from these mines. Traces of the bullion are usually found in deposits of platinum and palladium ore. Sixty percent of the world's supply comes from South Africa deposits. The Ural Mountains of Russia are another major source, but the political climate of that region affects rhodium prices. So does the unyielding economic law of supply and demand. South Africa production increased due to the high prices of the platinum metals group in the late 1980s. The increased supply on the market then caused declining prices in the 1990s. But prices have been increasing since the late 1990s because of supply interruptions in the Ural Mountains region. In March 2003, rhodium prices were at about $300 per troy ounce. Five years later, in March 2008, the cost per troy ounce is hovering around $9,000. Those hoping to make a fortune investing in precious ores may be too late. Only time will tell if these kinds of price increases will continue in the near future.
The phenomenal increase in the platinum group metals has had a criminal side-effect. Catalytic converters are being stolen nationwide, especially from beneath vehicles that have a high clearance such as trucks and sports utility vehicles. The catalytic converters are anti-pollution devices that cost automobile owners about a thousand dollars to replace. But the thin coating of the platinum group metals on these devices brings about $200 apiece on the scrap metal recycling market. Since it only takes a couple of minutes to remove a bolted converter from beneath a vehicle, it doesn't take a motivated thief long to come up with some serious cash. Of course, this isn't a recommended way of making money from precious metals. The apostle Paul had this to say to the Christians at Ephesus: "Let him that stole steal no more: but rather let him labour, working with his hands the thing which is good, that he may have to give to him that needeth" (Ephesians 4:28).
With the real estate market in a slump and fears of an economic recession, many investors are looking to the bullion market as a solid investment option. People who had no idea how to invest in precious metals a few years ago can now find a wealth of investing information on the internet. The buying and selling of such precious metals as gold, platinum, or rhodium bullion have been made easier as investors can make purchases with a click of the mouse. Like all transactions, though, buyers need to do enough research to know that they are buying from reputable dealers. Investors also need to remember that rhodium prices can go down as quickly as they go up. Though precious ores have an intrinsic value, a $9,000 investment made today could easily drop back to $300 in a relatively short time. As with all investment options, some risk is involved. The savvy investor does thorough research before making investment decisions.
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