Should You Trade Ruthenium?

January 9, 2012 | By | Reply More

Johnson Matthey, a multinational metal and chemical company, fixes the spot price for Ruthenium twice a day.

In practice the price is a starting point for trading large amounts of the metal, usually 100 troy ounces minimum. For smaller amounts you must expect to pay more than the quoted price.

A further handicap to trading the metal in small quantities is the size of the ‘spread’, that is the difference between the bid and offered price can be in the order of 10% or more.

Potential investors should also take into account the limited size of the ruthenium market where perhaps only one or two trades a day, or even a week or month, take place. In other words a very difficult  market to trade

The metal is traded commercially in sponge form and not in ingots. This is a process that consists of  crystals of refined ruthenium with tiny pockets of gas.

The annual production of ruthenium is only around 12 tons and it has significant uses in the electronic industry and as a catalyst, while other uses, particularly in cancer treatment and other medical related fields are being researched.

As a niche investment, it can be argued that there  is long term profit potential in the metal but considerable research into this rare metal should be carried out before entering this very restricted market.

The Ruthenium spot mid price in the first week of 2012 was $90 an oz.

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Category: Platinum Group Metals

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