Three times more expensive than gold, the metal is even hotter than Bitcoin

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2021-03-28 06:07:12

Iridium is the metal that is making every commodity, Bitcoin included, “smoke” this year when it comes to momentum. However, the challenge for investors is to buy Iridium.

It is one of the world’s rarest metals, a byproduct of the mining of platinum and palladium. Iridium’s price has risen 131% since the beginning of January, far exceeding Bitcoin’s 85% gain. The rally was due to supply disruptions in the past year and increased demand for electronic screens, according to refiner Heraeus Group.

According to data from Johnson Matthey Plc, Iridium has risen to 6,000 USD / ounce, 3 times more expensive than gold.

In a market much smaller than the metals of the same platinum group, problems with the production and extraction of Iridium all have a strong impact on the price level. In addition, betting on this metal price is not easy, because demand is dominated by parties for industrial purposes.

Iridium and Bitcoin prices

Iridium is not traded on the stock market or through ETFs. Accordingly, retail investors are limited in quantity from a few traders and large investors to buy in order to bring Iridium directly to producers.

“The lead time on the supply side is too long to increase supply on time. The only short-term solution is the current price,” said Jay Tatum, portfolio manager at Valent Asset Management. Soaring will cause more people to sell out the amount of metal they hold. “

In part, Iridium’s appeal comes from its limited investment in platinum production, which is mainly used in the autocatalyst sector to limit emissions. Meanwhile, investors are pondering the possibility of increasing demand for platinum from the new hydrogen technology instead of switching to electric vehicles.

The outlook for low supply also pushes the prices of other platinum grades. Palladium is currently about 9% lower than its peak, rhodium has hit a record high of $ 29,800 an ounce this week and ruthenium also reached its highest level in nearly 13 years.

Iridium is one of the rarest elements on the planet, a hard metal belonging to the platinum group. With a high resistance to corrosion, Iridium is used in the refineries of high temperature semiconductors, electrodes in chlorine production, and radioisotope thermoelectric generators used in ships Unmanned universe. In automobile manufacturing, iridium is used as an ignition spark plug.

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