Rhodium prices are extremely inelastic, which means that its price is very dependant on supply and demand. If there is no supply and a lot of demand for rhodium, the price will skyrocket. The rhodium market is very small compared to the gold market and will have high volatility and low liquidity. For example, prices in 2003 were below $US 1000/ounce, but went up to $US 10000/ounce, which is a ten fold increase (Chart 1).
|Chart 1: Historical Rhodium Price|