With all eyes on gold getting back to the $1,300 level and talk of bitcoin headed towards $10,000 – investors forget there is one commodity that has already achieved this feat. On Friday, spot rhodium rallied $40 and hit $1,200 an ounce, more than doubling its gains since the start of the year. Hence, the rare metal is up nearly 70% year-to-date or $485 an ounce, with prices rebounding from lows of $575 last seen in July 2016.

6-Month Rhodium Price Chart

rhodium prices rise

Peter Hug on Rhodium

Peter Hug, global trading director for Kitco Metals, explains the bullish action in rhodium. Hug relays some history to viewers:

“It hit a high in 2008 of $10,000 an ounce, it traded all the way down to about $650 in December of 2016 which was a screaming buy. It’s used in the catalytic converter industry. The economies are strengthening, cars sales are going higher, it was just begging to be bought. I just don’t think people have enough knowledge on the market and are just nervous buying something that they’re not familiar with.”

Metals expert Hug goes on to explain, for the reason that, the market is so small compared to the other metals, rhodium’s moves can be drastic and volatile. Finally, from 2003-2008, the metal surged almost 23-fold when it hit that record $10,000.