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.

Ned W Schmidt Archive

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

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.