Rhodium is crashing due to a combination of falling auto demand (especially with the EV transition), oversupply from China's fiberglass industry selling off inventory, and increased recycling, which collectively outweigh the metal's use in catalytic converters for gasoline engines. Technical factors like large price swings and speculation, plus potential future substitution in converters, also add to the volatility and downward pressure.
Rhodium prices are dropping due to a combination of increased supply (from better mining recovery and recycling) and weakening demand, primarily driven by the shift towards electric vehicles (EVs) which use fewer internal combustion engine (ICE) catalytic converters, plus technological advancements reducing its use in other areas like fiberglass, and significant inventory destocking from major players like Chinese manufacturers. High prices previously incentivized efforts to use less rhodium, leading to a significant price collapse from its peak.
Most definitely. The price of rhodium reached $28000 USD per ounce in 2021 before dropping back to $15000 USD per ounce. The price is predicted to climb back to $27000 USD per ounce in 2022. Meanwhile gold is trading at under $2000 USD per ounce.
Rhodium Market size was valued at USD 3.02 Billion in 2024 and is poised to grow from USD 3.19 Billion in 2025 to USD 4.97 Billion by 2033, growing at a CAGR of 5.7% during the forecast period (2026–2033). Rhodium is a platinum group metal resistant to corrosion and highly reflective.
Rhodium, a close relative to platinum, is a chemical element (Rh, atomic number 45) that is not only very rare, but incredibly hard and ultra-white. Because of its rarity, it is also quite expensive-- so much so that in jewelry it is only seen as an alloy or as an electroplated finish.
Investing in rhodium can be a profitable venture for those who can afford it. Rhodium's rarity, high price, and constant demand from the automotive industry make it an attractive investment option. However, the metal's price volatility and limited supply can pose risks for inexperienced investors.
South Africa is the dominant producer, accounting for nearly 80% of global rhodium output. Russia and Canada account for the remaining 20% of global rhodium production, depicted in the graph shown.
Gold is often seen as a safe-haven investment and a hedge against inflation, with a historical track record of maintaining its value over time. Rhodium is a more volatile and riskier investment, primarily driven by its industrial applications.
The best metal to invest in 2025 may not be gold or silver, but copper… and I'll explain why… Currently, copper is the most preferred metal to make electrical wires, and as battery operated vehicles rise around the world, we need 4X as much copper to manufacture these cars, but supply isn't growing as much.
The Downside
While rhodium plating will increase the shine and durability of your jewelry, at the end of the day, it's still just that: plating. Although it will not tarnish, it does wear off over time and how quickly will depend on how much wear and tear the jewelry takes.
Rhodium's all-time high occurred in March 2021, reaching nearly $30,000 per ounce, driven by extreme demand for automotive catalytic converters due to stricter emissions regulations, combined with limited supply from major producing regions like South Africa. This price surge made it significantly more expensive than gold, though it has since fallen, with prices fluctuating in the thousands of dollars, but remaining highly volatile.
Rhodium supply remains extraordinarily constrained. Production is heavily concentrated in South Africa, where mining output continues to face pressure from: Operational challenges and electricity shortages. Labour and political volatility.
We'll dive into why Musk's financial focus gravitates towards the tech sector but should consider investing in gold. Elon Musk does not hold significant investments in gold, but he should. Musk's focus is largely on technology. His investment strategy aligns with his innovation-driven approach.
Rhodium: Stillwater Complex, Montana, USA
The Stillwater Complex in Montana is a distinct geological formation responsible for some of the world's most notable rhodium discoveries. As the largest known rhodium deposit globally, it holds estimated reserves of over 700,000 ounces.
Although the underlying metal may be magnetic, the rhodium plating itself is not magnetic. Thus, if you have a piece of jewelry that has been rhodium plated, it will not be magnetic.
For example, a standard catalytic converter might contain 0.03 to 0.05 ounces of rhodium. While this might seem minuscule, at current market rates, it can translate to hundreds—or even thousands—of dollars, depending on the unit's condition and the presence of other metals like platinum and palladium.
The Rhodium Market grew from USD 4.29 billion in 2025 to USD 4.50 billion in 2026. It is expected to continue growing at a CAGR of 4.86%, reaching USD 5.99 billion by 2032.
Found generally in two different places, catalytic converters, and jewelry. Rhodium is used to be coated onto gold jewelry to be able to create “white gold.” The primary use for Rhodium is in the catalytic converter market and is helped to negate the fumes and emissions from car engines.