The Unlikely Treasure in Your Car’s Muffler
Rhodium, once the cheapest member of the Platinum Group Metals (PGM), has driven a surge in thefts of Toyota mufflers, particularly from first-generation Toyota Priuses, after skyrocketing in value. It’s now one of the most valuable metals in the PGM.
Rhodium's rapid price escalation stems from its rarity and the sudden demand for cleaner automotive emissions standards worldwide. The metal’s use in catalytic converters, alongside platinum and palladium, and its limited supply have created a highly volatile and illiquid market.
Rhodium in Jewelry
Beyond its automotive applications, rhodium is prized in the jewelry industry for plating. It is often used to coat white gold and silver jewelry with a brilliant, tarnish-resistant finish to enhance its durability and appearance.
Rhodium Relative to Other Precious Metals
Unlike gold and silver, rhodium is rarely mined as a primary product. It is typically a by-product of platinum and nickel mining, meaning there are few dedicated rhodium mines.
The rhodium market's illiquidity is arguably the highest among precious metals, meaning that significant price movements can occur with minor changes in supply or demand.
Rhodium has never been used as a monetary metal, mainly due to its scarcity and the complexity of its production. However, its role in industrial applications and luxury goods underscores its unique position in the PGM family.