Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Rhodium Favorable Technical Conditions

Commodities / Metals & Mining Jul 05, 2010 - 09:45 AM GMT

By: Ned_W_Schmidt

Commodities

One aspect of Rhodium makes it of special interest, which arises from being the rarest metal. No one seems to be looking for it. If, when looking for something else, Rhodium is found, it is harvested. The rarity of the metal apparently precludes it from existing in sufficient quantity to justify the quest for it. The Rhodium play you are seeking is Rhodium itself.


Our first observation is that Rh has traded down in excessive fashion during this period of fear over economic growth due to the EU debt problems. It has moved to a price where it has found support twice before this year. Is this a price where the metal is attractive to users?

At this time, Rh demonstrates two favorable technical conditions. In the top chart Rh has moved through the down trend line drawn on the absolute price of the metal. Alone that event would be encouraging. That means the down trend is no longer dominant, and that somewhere out there buyers exist.

In the second chart it is doing the same  on a measure of relative strength. That chart is of the ratio of price of $Rh to $Au. That ratio has moved through the down trend line.

So, we have favorable technical developments on both an absolute and relative basis. Given that situation and the likelihood that Rh is under valued, investors should consider diversifying their precious metal holdings with Rh. If you have a substantial investment in Au, now is perhaps the time to add some Rh.

$Rh Preliminary Price Valuation Range

Rh Current Valuation $Valuation Potential % Change
$2,430 Over $7,500 209%
$2,430 Fair $6,000 147%
$2,430 Under $4,500 85%

Next publication date: 13 July 2010

By Ned W Schmidt CFA, CEBS

RHODIUM TRADING THOUGHTS is published presently on an irregular basis, and is available only at our web site: www.valueviewgoldreport.com

To receive THE VALUE VIEW GOLD REPORT click on a link at bottom of one of pages, or send check(US$149) or credit card information to: Schmidt Management Company, 13364 Beach Blvd. Suite 812, Jacksonville FL 32224. Fax orders can be sent to 215-243-7161. Our phone number to place an order is 352-409-1785.  Subscriptions cannot be cancelled or refunded.

Copyright © 2010 Ned W. Schmidt - All Rights Reserved

Ned W Schmidt Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in