Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Ned Schmidt, CFA, CEBS, The Value Gold Report
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Rhodium Trading Thoughts for 16 May 2011

% of readers think this story is Fact. Add your two cents.


 

RHODIUM TRADING THOUGHTS is about timely and profitable trading of precious metals. We do not believe every turn in the market can be called. Our goal is that our recommendations should be profitable. Profits are the goals, not trades. Do not expect all recommendations to be profitable. No system can achieve that lofty goal. Our goal is simply to state whether conditions for a metal are favorable or not. Buy signals are issued when appropriate. These signals are generally speaking for day they are issued. If price remains below signal price, buying can be done. Do Not Buy signals are given when market is over bought, and buying is unwise. Blue triangles indicate an over bought condition. These would not be good times to buy, so they are labeled Do Not Buy. Software is not showing complete legend, for some reason.

Recent weeks have not been kind to any commodity investments. The Silver bubble had encouraged an unstable narrow focus for investing funds. With the coming of the Great Silver Crash of 2011, contagion caused commodity prices to move lower.

A combination of factors has hurt Rhodium’s price. High oil prices, artificially inflated by speculative futures trading, have damaged the psychology of the auto industry. Earthquake and tsunami in Japan have hurt auto production in that nation, damaging demand for all in the PGM. Those are transitory factors. They will again make cars in Japan.

But perhaps more important, Johnson Matthey, kitco.com 16 May, reports that Rhodium demand rose 22% in 2010. Rhodium usage by the glass industry rose 200%. Latter included use for televisions, computer monitors, cell phones, etc.

Bottom chart is of the price of $Rhodium to $Gold. The rally in precious metal prices has pushed the ratio to an extreme level that is not sustainable. The crash of Silver should serve as unquestionable evidence of that. Rhodium’s price, relative to $Gold, is much like a coiled spring. This misalignment of values will be corrected.

Rhodium, as shown in the first chart on page one, is deeply over sold. This situation is not likely to persist. When it moves through the down trend arrow, prices should move materially higher. Relative to Silver, which is still over valued and now trading in a bear market, Rhodium is a much preferred choice.


OPINION:

The value of insurance, all of the various kinds, has been vividly demonstrated around us this past month. Tsunami in Japan, tornados in the Southern U.S., widespread flooding of the Mississippi River value, and the collapse of Silver all demonstrate that insurance is wise. As those being pummeled financially in Silver now understand, insurance cannot be purchased after the tsunami hits. Diversification is THE most powerful form of financial insurance. Diversification into Rhodium, especially by those still holding Silver, would be a wise move.

 

$Rh Preliminary Price Valuation Range
US$ Rh Current Valuation $Valuation Potential % Change
$2,030 Over $7,500 269%
$2,030 Fair $6,000 196%
$2,030 Under $4,500 122%

 

US$ SILVER Valuation
US$Ag Current Valuation $Valuation Potential % Change
$34.53 Sell Target $35.50 3%
$34.53 Long-Term Target $33.00 -4%
$34.53 Fair Value $15.60 -55%

 

Researchers develop ‘greener’ hydrogen production method” from www.theengineer.co.uk, 13 May 2011.

“A Dutch research team has found a way to produce hydrogen from natural gas at lower temperatures than existing methods and without releasing carbon dioxide (CO2).”

“The new technique uses a Rhodium catalyst to reduce the temperature of conventional steam reformation from around 850ºC to between 400ºC and 500ºC, while a Hydrotalcite sorbent (a material used to absorb liquids or gases) captures the CO2.”

“Eindhoven University of Technology PhD student Mohamed Halabi collaborated with the Energy Research Centre of the Netherlands (ECN) to demonstrate the feasibility of the process.”

“‘The enormous reduction of the reactor size, material loading, catalyst/sorbent ratio and energy requirements are beneficial key factors for the success of the concept over the conventional technologies,’ said Halabi.”

“‘Small-size hydrogen generation plants for residential or industrial application operating at a relatively low pressure, of less than 4.5 bar, seem to be feasible.’”

“Producing hydrogen using relatively little energy and without releasing large amounts of CO2 could be hugely beneficial in efforts to combat climate change because it burns to release high amounts of energy with only water as a by-product.”

What is a catalyst? A catalyst is some chemical or material that facilitates a chemical process. It is not consumed in the chemical process or involved in the chemical reaction. One could drink beer out of a barrel, but a glass facilitates the consumption of the beer. The glass, or catalyst, remains unchanged after the consumption process is complete.

Update: RAPT is up 50+% since our mentioning it last month.

Your Eternal Optimist,

 

Author: Ned W. Schmidt

Ned W. Schmidt,CFA,CEBS
THE VALUE VIEW GOLD REPORT

Ned W. Schmidt,CFA,CEBS is publisher of THE VALUE VIEW GOLD REPORT and author of “$1,265 GOLD”, published in 2003. A weekly message, TRADING THOUGHTS, is also available to electronic subscribers. You can obtain a copy of the last issue of THE VALUE VIEW GOLD REPORT athttp://home.att.net/~nwschmidt/Send_Last_Report.html Ned welcomes your comments and questions, and tries to answer most all. His mission in life is to rescue investors from the abyss of financial assets and the coming collapse of the U.S. dollar. He can be contacted at [email protected].

Copyright © 2003-2011 Ned W. Schmidt



Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Humic & Fulvic Liquid Trace Mineral Complex

HerbAnomic’s Humic and Fulvic Liquid Trace Mineral Complex is a revolutionary New Humic and Fulvic Acid Complex designed to support your body at the cellular level. Our product has been thoroughly tested by an ISO/IEC Certified Lab for toxins and Heavy metals as well as for trace mineral content. We KNOW we have NO lead, arsenic, mercury, aluminum etc. in our Formula. This Humic & Fulvic Liquid Trace Mineral complex has high trace levels of naturally occurring Humic and Fulvic Acids as well as high trace levels of Zinc, Iron, Magnesium, Molybdenum, Potassium and more. There is a wide range of up to 70 trace minerals which occur naturally in our Complex at varying levels. We Choose to list the 8 substances which occur in higher trace levels on our supplement panel. We don’t claim a high number of minerals as other Humic and Fulvic Supplements do and leave you to guess which elements you’ll be getting. Order Your Humic Fulvic for Your Family by Clicking on this Link , or the Banner Below.



Our Formula is an exceptional value compared to other Humic Fulvic Minerals because...


It’s OXYGENATED

It Always Tests at 9.5+ pH

Preservative and Chemical Free

Allergen Free

Comes From a Pure, Unpolluted, Organic Source

Is an Excellent Source for Trace Minerals

Is From Whole, Prehisoric Plant Based Origin Material With Ionic Minerals and Constituents

Highly Conductive/Full of Extra Electrons

Is a Full Spectrum Complex


Our Humic and Fulvic Liquid Trace Mineral Complex has Minerals, Amino Acids, Poly Electrolytes, Phytochemicals, Polyphenols, Bioflavonoids and Trace Vitamins included with the Humic and Fulvic Acid. Our Source material is high in these constituents, where other manufacturers use inferior materials.


Try Our Humic and Fulvic Liquid Trace Mineral Complex today. Order Yours Today by Following This Link.

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.