What Is Rhodium? How You Can Make Money when We Recycle It for You

Recycle Refine RhodiumRecycle Precious MetalsRecycling and Refining
Written By Barry Lenson

What is rhodium? Let’s start today’s post with the basics. It is a white-toned precious metal (atomic symbol Rh) that is also an element. It is one of the platinum group metals.

And Rhodium is rare, obtained in very small quantities as a byproduct of platinum and nickel mining, principally in Canada and Russia. Because it is so rare in nature and so difficult to obtain, it is in great demand from sources that include jewelry and catalysts.

That rareness helps explain why rhodium is a hot investment metal today, trading for a staggering $13,800.00 on the London Fix.

How did Rhodium get to where it is today?

First, a Bit of Rhodium History

Back in 1803, a scientist named William Wollaston found a way to extract rhodium from platinum and palladium ore. 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 introduced to reduce the pollutants in automobile exhaust emissions.

They contained rhodium and since then, the demand for it has remained strong.

Tiny Quantities Can Offer a Very Big Payback

If you shop online, you will discover that rhodium-plated rings, earrings, and chains are selling for $50.00 or less. Some examples:

  • A rhodium-plated bangle bracelet, made of brass, selling for only $35.00

  • A rhodium-plated brass charm and necklace chain, selling for $42.00

Those items really are selling for those low prices. What is going on? How can that be?

It’s because extremely thin layers of rhodium are used as a plating. A tiny amount of rhodium is enough to add a bright, shiny surface to a ring or another piece of jewelry. Rhodium is used because it is bright, tarnish-resistant, and abrasion-resistant. It has a beautiful bright finish, not unlike platinum. And it retains all those properties, even when only a thin layer is applied to other metals. If a plating of rhodium is added to silver, for example, that silver becomes more resistant to oxidation and abrasion.

Rhodium can be plated onto gold, silver, platinum, and base metals too. But most of the better quality rhodium-plated jewelry you will find is made of silver that has been given a thin plating of rhodium. Plus, rhodium can be plated onto jewelry that was made in earlier years. If you own a piece of gold, silver, or platinum jewelry, you can have a jeweler apply a thin plating of rhodium to it to improve its finish and abrasion-resistance. Also, do-it-yourself rhodium-plating kits have recently become available; they can be used to apply a very thin layer of rhodium to other metals.

What about Rhodium Bullion?

It is also possible to invest in rhodium bullion bars. For example, you can buy a five-ounce rhodium bullion bar for about $75,000.

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 the year 2021, catalytic converters still represent a way to invest in rhodium scrap. But in our view, they are not the best way to invest in rhodium. (They also contain palladium and platinum.) Because they contain tiny amounts of the metal, you need to obtain more than 500 of them before they are worth recycling. And before you can recycle them you need to find them, store them, and then pay to ship them to us. That is why we recommend the following rhodium-bearing scrap instead:

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

  • Platinum-rhodium thermocouple wire.

Why Rhodium Recovery Is the Most Demanding Form of Recycling Today

A pretty good precious metal refinery might be good enough – or almost good enough – if they are recycling a batch of silver-plated tableware, candlesticks, or other fairly commonplace kinds of scrap for you. After all, if the refinery you are using lets a troy ounce of silver go down the drain, that will cost you about $16.00 at today’s trading prices. Okay, that is bad, and the precious metals refinery you are using should never let any metal of yours slip away. But if you are having that refinery process, say, a few hundred pounds of silver scrap, maybe you can live with the loss of an ounce of silver. But you would never want to let an incompetent refinery lose even a tiny amount of rhodium.

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 all forms of rhodium scrap. Call our precious metal recycling consultants to learn more. 

Barry Lenson
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