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This little jar holds a metal that is fully 100 times rarer than gold. Some might therefore consider this dark powder the ultimate symbol of wealth - above and beyond gold, silver, platinum, or palladium - because of its..
12 May 2010
By Jon Nadler
This…is one small jar for a vault to hold, and one giant leap for noble metals investors.

In a little one-ounce jar of rhodium sponge you have –at once -a noble and precious metal for which no known primary deposits exists, for which there are no dedicated mines in existence, and a metal that only makes a rare (and not at all guaranteed) appearance if you go digging for platinum and palladium (which make for quite a treasure-hunt themselves), or for nickel.

This little jar holds a metal that is fully 100 times rarer than gold. Some might therefore consider this dark powder the ultimate symbol of wealth - above and beyond gold, silver, platinum, or palladium - because of its price, rarity, and indispensable nature. The metal in question is rhodium. Discovered along with palladium by British chemist and physicist William Wollaston in 1803, rhodium belongs to the platinum group metals (PGM) together with platinum and palladium.

You can now own and hold a metal that South African mines supply 70% of global production of. A metal that the entire planet has only been able to produce in quantities of less than one million of these one-ounce jars per annum of, and that was at the peak of output that we recorded back in 2006. A metal without which you cannot build a clean fossil-fuel burning conveyance, and one which builders of said vehicles do not have the luxury of being able to substitute with other, less costly metals now, or in the foreseeable future.

The inescapable reality that so much of the world’s rhodium supply issues from South Africa made for a very interesting year for the metal in 2008. Severe curtailments in the amount of electrical energy flowing to South African’s mines during the early part of that year facilitated significantly higher platinum-group metals prices by the middle of that year. In rhodium’s case in particular, the price spike was enormous and it briefly lifted the metal to a hair above the $10,000 per ounce level. The rhodium market balance has been in a deficit since 2004.

The rhodium market was also projected to be in a deficit of 60,432 ounces last year. Thus, increasing reports of individual investors buying rhodium, in expectation of higher prices down the road have come as no surprise and they have caught the attention of our company’s Founder. Ever the innovator and market leader, Mr. Kitner decided that the time has come to make this exotic metal available to a wider audience of investors.

Kitco Metals Inc. brings discerning investors an invaluable new investment product —Kitco Rhodium Sponge. In keeping with its tradition of innovation, Kitco has packaged 99.9 per cent pure rhodium powder (sponge) in tamper-proof plastic bottles of one, five and 10 ounces. Now, you can actually physically acquire rhodium, the rarest and most expensive precious metal. Before investing in rhodium, people should realize that rhodium prices can be quite volatile due to the very small size of the market.

You should invest in rhodium if you:

Have a medium-term investment horizon of three to five or more years
Are seeking capital growth through a precious metal that can complement a diversified portfolio
Are interested in hedging against inflation during times of economic uncertainty
Are comfortable with the high risk associated with the volatile precious metals market and are looking for a speculative liquid investment of less than $50,000.

Happy Trading, Happy Investing.

Jon Nadler is Senior Analyst, Kitco Bullion Dealers Montreal

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