2020’s hottest trade isn’t high-flying tech stocks, but a little-known metal called rhodium.
Prices of the precious metal have surged more than 30% this year — touching their highest level since 2008 — fueled by demand from the automotive industry.
Rhodium, along with other precious metals such as palladium and platinum, is used in catalytic converters, which are part of auto exhaust systems that reduce toxic gas emissions. According to S&P Global Platts, more than 80% of demand for rhodium and palladium comes from the automotive industry.
Rhodium began the year trading at $6,050 per ounce, according to chemical company Johnson Matthey, before surging to $8,200 on Thursday for a gain of…