Rhodium, a lesser-known but highly valuable metal, has experienced a significant surge in price, surpassing $13,000 per troy ounce. This surge marks a remarkable increase of over 30% in a short period. While rhodium faced a previous peak in 2008, followed by a rapid decline, it has now exceeded that peak due to increased demand from the automotive sector.

The automotive industry relies heavily on rhodium for its catalytic converters, essential components that help reduce harmful emissions. Approximately 80% of the demand for rhodium and its counterpart palladium comes from this industry. Interestingly, South Africa holds a dominant position in rhodium production, contributing around 80% of the global output.

The rarity of rhodium significantly impacts its price dynamics. With an annual production of only about 30 tonnes, rhodium stands in stark contrast to gold, which sees annual production rates in the thousands of tonnes. The Volkswagen emissions scandal in 2015 played a pivotal role in boosting rhodium prices, as stricter emission regulations in countries like China and India have fueled demand for platinum group metals, including rhodium.

Palladium, another precious metal closely related to rhodium, also benefited from the aftermath of the Dieselgate scandal. As diesel vehicle sales declined and petrol cars regained popularity, the demand for palladium, primarily used in petrol vehicle catalytic converters, witnessed an upsurge. Despite being rarer than platinum, palladium is the most expensive among major precious metals due to its extensive use in catalytic converters.

Gold, a versatile metal with applications ranging from jewelry to electronics and aerospace, holds a significant historical and cultural value. Once a symbol of wealth and prestige, gold has been treasured by societies worldwide for centuries. While South Africa historically dominated gold production, countries like China, Australia, and Russia have emerged as key players in the global gold market.

Iridium, known for its rarity and unique properties, is among the scarcest metals on Earth. With an annual production of merely three tonnes, iridium’s exceptional hardness and corrosion resistance make it a valuable additive in strengthening alloys. Mined mainly in South Africa and Russia, iridium serves various industrial applications, including its use in crucibles due to its high melting point.

Platinum, a member of the platinum-group metals, faced challenges post the Volkswagen scandal due to its primary use in diesel vehicle catalytic converters. As the automotive industry shifted towards petrol vehicles, platinum lost its market share to palladium. Despite its current position below gold in terms of price, platinum’s reputation for prestige remains intact. South Africa remains a key player in platinum production, supplying a significant portion of global demand through companies like Anglo American Platinum and Impala Platinum.