Precious Metals and Rhenium in 2020
It’s a very exciting time for Precious Metals at the moment. We have already seen in 2020 , two of the gang reaching all time highs, and it’s only the beginning of the year.
We are talking about Rhodium and Palladium. Rhodium hit $10,250 an oz and Palladium reaching nearly $2650. So what is going on? Well more than 85% of Rhodium and Palladium supplies end up in a Catalytic Converters.
There was only around 220 tons of Palladium and a tiny 22 tons of rhodium of supply in 2019.
As governments demand more environmental protections, the auto industry needs to increasingly use these two metals to clean up the poisons that are released from car exhaust fumes . Rhodium and Palladium are usually used in Gasoline cars, whilst Platinum is used in Diesel cars. Automakers are looking at replacements, however with any replacements having to go through a stringent regulatory testing process, we could be looking at even higher prices in the next two years. I predict Rhodium will dip when it hits $12,000 and will go quite steeply down, but wilI pick up a few months later. I would buy in at $5400 and I think it will reach new highs. I think Palladium will keep going up for the next two years with small corrections along the way.
Gold has hit a 6 year high this month trading at $1580 per oz. I think this decade is going to see the yellow metal reach record highs over $5,000. There are too many Authoritative leaders in the world at once. These types of leaders all too often make decisions that were neither expected, nor predicted. That uncertainty coupled with the extreme times we seem to be living in, will cause Gold to shine ever more brightly as the safe haven choice. I personally think it is way undervalued. Gold is the only physical thing you can hold in your hand, and actually feel, with your emotions. a true value.
With paper money continuously being devalued by quantitative easing, the value only goes down. But we have used gold since before biblical times, It’s in our genes!!!
Think about it. Bitcoin is worth nothing without electricity. Bitcoin needs electricity to confirm its value.
Gold is always gold! Paper money will come and go, but gold will still be around. It’s real! It has its own intrinsic value! It is not a token.
The last element I’m going to talk about today is Rhenium. Rhenium has the third highest melting point, and the highest boiling point of any element. It is mainly used as a super alloy mixed with nickel in Jet engines. It has many military uses as well. But you won’t see this published. It exists between transition and precious metals on the Periodic Table. It has unique qualities, and I believe it is undervalued. With only around 40 tons produced a year, any jump in demand will cause quick price increases. The price now for a kg of sintered pellets is less than $2,800. I think its going much higher in to five figures.
The writer traded in precious metal for over 5 years and is the founder of PEGUYS. All opinions are his own and are not to be seen as investment or any financial advice.
The second part of this blog post will be published shortly.