What is Rhodium?

Rhodium is more expensive in comparison to gold, silver and platinum. In 2007-2008 rhodium price hit around $10,000 an ounce, and then during the recession, the rhodium price was down to less than $1050 an ounce.

Now the prices are again increasing and have reached one of the highest levels of 11-year at $4200 an ounce, where investors are again eyeing $10,000 an ounce. The metal gained 82% in the current year, and its momentum is picking up fast.

Analysts say it is stuck in a one-way market where the marketplace is based on highly opaque trades where the prices are highly volatile. Analysts also predict that another rally to 10,000 can lead to a crash since this appears to be a parabolic rally, which is unhealthy for the sector.

Rhodium Plating

It is a member of the platinum family, which has a red colour – like a rose. Its electroplating is widely used on materials like jewellery surfaces due to its scratch-resistant properties.

Most of the white gold plating is done from the metal where an alloy of silver, nickel and palladium can be used. These can create a yellowish cast because of the slight grey colours.

A thin layer of electroplating is used to create the jewellery, and the plating prevents tarnishing and discolouring of the metal. It also helps improve durability and gives a smooth finish to the piece, but such items may require re-plating over the years.

Rhodium uses and properties.

It is a brittle metal, which cannot be shaped easily and cannot be used to make rhodium jewellery because it cracks like glass but plating enhances durability.

It can be used to plate silver sterling, which makes it appear lustrous and tarnish-free for years. Metals like nickel and lead may sometimes cause skin irritation to people who are allergic, but a layer of red metal helps prevent such allergies.

It is used in jewellery and in great demand in the auto sector, where it is used as a catalytic converter. The price makes it expensive and unhealthy for the sector to depend on such elements.

Although the demand forecast for the metal is expected to grow, especially in Europe and China, it is believed that the metal will be easily absorbed by the buyers, where strategic buying will increase demand and price.

The only factor hindering the rally is a weakness in global economies and the unpredictability of trade wars.

How to identify such coatings?

To determine if the jewellery is coated with metal, one should check the retailer’s disclosure, where the retailer has to detail the purity of elements used in the final product.

Or else, one can opt for platinum coats, platinum jewellery or silver to get alternative white plating, but each element has its maintenance costs and individual drawbacks.

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