Rhodium Value Increases Because Of Stricter Auto Emission Regulations
Rhodium is a precious metal that helps convert pollutants from auto emissions into harmless gases. The precious metal has experienced an increase in demand since there have been tighter regulations on the emissions cars sold in Europe and China.
The precious metal is known for experiencing wild swings in prices, particularly because the commodity does not have a futures market. The value of rhodium recently increased 65% to a price of $9,985 per ounce. This surge comes after a yearlong of consistent growth in value. The yearlong rally increased the value of Rhodium by more than 300%.
“This is a huge move already in a couple of weeks,” said Hans-Guenter Ritter, head of precious-metal trading at Heraeus Holding GmbH.
The increase in value presents a loss for the auto-industry, which has been experiencing a general decline in sales. The huge surge in value cornered the auto industry into absorbing a cost of $ 8 billion during the past month. Additionally, there has not been major moves to help supplement this increase in demand, since the prices for Rhodium have been so unstable.