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If you are thinking about selling or buying rhodium at the moment, you need to be aware that there is currently a wide spread.
The information below might be useful in making decisions on buying, selling, or holding.
The rhodium market is no stranger to low liquidity but now that is coupled with high prices. That means there is a much higher likelihood of large price swings in either direction. The result? A much larger than normal spread. The result is that there is currently a $2000 gap between the bid and ask price of rhodium.
In other words, if you buy rhodium now, you will need to wait for the market to move up at least $2,000 (or about 15%) to break even.
To help you decide with buying, you need to know what to expect when selling. Here are three different buy back policies you have with Kitco in order of least to most favorable.
1) Selling Bars to Kitco: Because we might not be able to sell your bars and may need to refine them instead, we might pay $1,000 to $1,500 below the bid price. That’s because of the extra costs of refining (Kitco was refining and trading rhodium long before we began dealing in bullion.)
In that case, you would need the price to increase by at least $3500 to break even.
2) Selling Sponge to Kitco: If we buy your rhodium in the form of sponge, we would pay as high as 95% of the current bid price, which is about $1000 more than we would buy your bars for.
3) Pool (Metal Account): In the form of pool, we would buy your rhodium back at the full current bid price. We can do that because with pool there are no costs associated with refining or handling or security of physical metal.
Keep all these options in mind as you make decisions.
In terms of selling to you, our price for all 3 forms (pool, sponge, bars) are very much the same.
For rhodium orders over 20 oz please call us at 1-866-971-2677.
Rhodium is part of a group of precious metals called the platinum group metals (platinum, palladium, ruthenium, iridium, and osmium). These platinum group metals have similar chemical and physical properties.
Rhodium is extremely rare!
Rhodium has an estimated earth’s crust concentration of 0.001 parts per million (ppm). In comparison, platinum’s ground abundance is at 0.005 ppm, gold is uncovered at 0.004 ppm, and palladium is found at 0.015 ppm.
For perspective: If we converted rhodium’s rarity into time, we would find 1 minute of rhodium per 1,900 years! For gold, over 475 years, platinum over 380 years, and beyond 125 years for palladium.
The world’s main rhodium mining industry is in South Africa. About 80% of rhodium mine supply comes from South Africa. Russia produces the next largest percentage (about 12%) of the world’s rhodium supply. Canada and the USA mine about 3% while Zimbabwe mines about 4% of the world’s annual rhodium supply.
Annual world rhodium production is about 30 tonnes or just under 1,000,000 troy ounces per year.
The world uses about 1,000,000 troy ounce of rhodium per year, although some years, rhodium demand outstrips supply, and vice-versa.
About 80% of rhodium demand comes from the automobile industry. Chemical uses account for about 10%, glass applications approximately 5%, and the electrical industry and jewelry uses account for the balance.
Rhodium investment makes up an extremely tiny portion of overall demand!
1) Physical Rhodium bars offered by Kitco: Own a physical piece of this most rare precious metal outright, in your possession, devoid of counter-party risk. Take delivery of this rare metal with fast, secure, and insured shipping.
2) Physical Rhodium Sponge offered by Kitco: This is the most liquid form of physical rhodium. Pure rhodium, viewed magnified, appears porous and powdery. This is why it is known as “sponge” in industry parlance.
Kitco Rhodium Sponge is a Kitco-exclusive product: Pure rhodium powder (.999+ fine) packaged in tough, tamper-proof pharmaceutical-grade plastic bottles. In addition to a unique serial number, each bottle’s label bears indications of its contents’ net weight and purity.
As with bars, you can own this most rare precious metal outright, in your possession, devoid of counter-party risk. Take delivery of this rare metal with fast, secure, and insured shipping.
3) Kitco Rhodium Pool (Metal Account): Kitco Pool - Metal Accounts are unallocated accounts of precious metal deposits in which you do not have direct title to specific allocated bullion bars or coins. As a Kitco Pool - Metal Account holder, you own a portion of a pool of precious metals, in this case rhodium, held by Kitco on your behalf..
Holder’s of Kitco Pool Metals may request an exchange of their Kitco Pool Metals holdings, for physical precious metal bullion product available on our online store (*upon payment of all applicable fabrication, shipping, and insurance charges).
What are the advantages of Kitco Rhodium Pool Metal?
Now we need to talk about something that will affect the availability of bars on the market in the longer term.
Baird & Co. and Pamp Swiss, the two companies who made rhodium bars, have stopped production. (They did this when the price went over 10,000/oz.)
As you can imagine, this means bars will become rarer and rarer as time goes by since no one is making them anymore.
On top of that, most traded bars are making their way back to refineries, so, the market supply of bars will continue to shrink.
We want to finish with a quick piece of advice to make your trading easier.
It’s no secret that establishing authenticity is vital when buying and selling bars. And life is so much easier when you can easily prove authenticity for your own metals.
If you bought from Kitco, you are in luck. All bars that come to our offices for sale are verified by us with a variety of testing methods including x-ray and electrical conductivity. That includes gold, silver, platinum and palladium bars as well as rhodium.
All the rhodium bars we offer for sale are secondary market bars. We have tested and verified the authenticity for every single one. Not only do you benefit from this guarantee, so does the person you sell to. This make selling that much easier.
So, our advice is to keep your Kitco invoice as proof that they were purchased from us. That way you have our name behind your precious metals.
For more information on rhodium call us at 1-877-775-4826, or email email@example.com