What Is Rhodium Used For?

Recycle Refine RhodiumRecycling and RefiningPrecious Metals Investing
Written By Barry Lenson

If you invest in precious metals, chances are you would answer that question by saying, “It’s a precious metal that is used as a thin plating on jewelry.” You probably know that rhodium, if plated onto brass, creates the impression of platinum or even white gold.

If that is your answer, you would be correct. Until recently, rhodium was used extensively as thin plating on jewelry. However, due do a number of reasons – such as the fact that using rhodium for that purpose creates a number of toxic byproducts – rhodium is being used less and less in jewelry production.

If you look on eBay, however, you will still find rhodium-plated jewelry. We just looked, and found these examples:

  • A rhodium-plated bangle bracelet, made of brass, selling for only $15.00

  • A rhodium-plated brass charm and necklace chain, selling for $24.00

  • Rhodium-plated brass chains, selling at low prices

What about Rhodium Bullion?

It is also possible to invest in rhodium bullion bars. For example, you can buy a five-ounce rhodium bullion 1bar for about $35,500.00, or a one-tenth-ounce bullion bar for about $710.00. Why those high prices? It’s because rhodium is selling for $7,100.00 right now on the London Fix.

Hey, what’s going on? How can a rhodium-plated bracelet be selling for $15.00 when the metal is trading for more than $7,000.00? The answer to that question lies in the words “thin plating of rhodium.” It’s because when rhodium is used to plate brass jewelry items, an extremely small quantity of the precious metal is used – just enough to apply a thin coating of white metal that is tarnish-resistant.

Does the Price of Rhodium Always Increase?

No, it doesn’t. Rhodium was trading for extremely high prices about 10 years ago, for more than $10,000. Now, it is only trading for about two thirds that. Toward the end of year 2019, rhodium prices showed a sharp increase. But will they continue to rise in the coming year? No one knows for certain.

But judging from the price changes of the last decade, buying rhodium bullion and expecting it to steadily increase could be a chancy investment strategy.

What’s the History of Rhodium?

In 1803 a scientist named William Wollaston found a way to extract rhodium from ore that contained platinum and palladium. Because the metal is reddish in color, it was named rhodium, from the Greek word rhodon, which means “red.”  For a long time, the metal wasn’t widely used, but about 100 years ago, rhodium started to be used in laboratory devices that measured high temperatures. Then everything changed in the mid-1970s, when catalytic converters were first used to reduce the pollutants in automobile exhaust emissions. Since then, the demand for rhodium – both new and recycled – has remained strong.

Where Can You Find Rhodium that You Can Invest In?

Although rhodium-plated pieces of jewelry are easy to find, they contain extremely small amounts of the metal, and are not worth investing in. And as we noted above, investing in rhodium bullion is an uncertain investment strategy. (On the other hand, it seems unlikely that the price of rhodium will plummet, so rhodium bullion could at least be a secure place to invest some money long-term.)

As we start 2020, catalytic converters still represent the most viable way to invest in rhodium scrap. But even catalytic converters contain only small amounts of rhodium. (They also contain palladium and platinum.) But cat converters contain varying amounts of rhodium. How much? If you have 500 or more of them, we will be happy to test them for you and extract the rhodium, palladium and platinum they contain.

Even though electric cars are gaining ground in the marketplace, catalytic converters are not going to disappear anytime soon. And remember, they are still used on popular gas/electric hybrid cars, including the top-selling Toyota Prius.  

We can also test and process the following kinds of rhodium-bearing scrap. Just bear in mind that these items are not always easy to find:

  • Platinum-rhodium alloy wire, sheet, rods, foil, tubes, and mesh.

  • Platinum-rhodium thermocouple wire.

Want to Know More?

If you own any of the rhodium-bearing items described in today’s post, call Specialty Metals Smelters and Refiners at 800-426-2344. Just bear in mind that it is difficult to generate a lot of income by investing in rhodium. Even though it is extremely valuable, it is found in very small quantities in catalytic converters and other forms of rhodium scrap. Call our precious metal recycling consultants to learn more.  

Barry Lenson
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