Rhodium

Rhodium Prices Higher as ETC and ETF Funds Set to Launch (26 May 2011)

(14 Dec 2011) What have rhodium prices done since the ETF launch?  Well they have gone down.

We are approaching $1400 USD an ounce.  I imagine that industrial users of rhodium are just happy as clams that they can buy raw materials so much cheaper than before.  I had occasionally looked at rhodium prices in relation to other precious metals because I believed that it was not as heavily influenced by massive speculators and hedgers.  But I now doubt that to be true.  I think the the formation of ETF funds linked to commodities simply enables high-frequency traders and algorithms to better latch onto the underlying price discovery system, and once liquidity is achieved it allows them co-opt the price discovery mechanism in their favor.