What Every Rhodium Buyer, Seller and Holder Should Know
Thinking About Buying or Selling Rhodium? Here are some key Insights.
Market Volatility and Liquidity in Rhodium
Rhodium is known for its low liquidity, leading to significant price fluctuations. While prices have eased from their peaks, there's still a $450 gap between the bid and ask prices. This means you’d need at least a 10% price increase just to break even.
How to Purchase Rhodium
- Rhodium Bars: Purchase physical rhodium bars with secure, insured delivery.
- Rhodium Sponge: Opt for pure rhodium powder (.999+ fine), which offers better liquidity.
- Rhodium Pool: Purchase unallocated rhodium through a pool account, offering real-time pricing and no storage fees.
Selling Rhodium to Kitco: Bars, Sponge, and Pool Accounts
- Rhodium Bars: Kitco pays $500 below the bid price for rhodium bars, so you’d need prices to rise by at least $950 plus any premiums paid on the bar when it was purchased, to break even.
- Rhodium Sponge: Kitco offers $500 more for rhodium sponge than for bars, making it a more cost-effective option.
- Rhodium Pool: For rhodium held in a Pool-Metal Account, Kitco’s bid price is $200 higher than for bars, making this option the most efficient.
Risks of Purchasing Rhodium
Rhodium’s high volatility, potential supply disruptions, and fluctuating industrial demand can lead to significant price swings. It’s important to understand these risks before acquiring rhodium.
Potential Rewards and Diversification
Rhodium’s rarity and critical role in industries like automotive make it a valuable addition to a diversified portfolio. Its volatility presents both challenges and opportunities, particularly for those looking to expand their precious metal holdings.
Interested in Owning Rhodium?
Explore your options with Kitco—whether you’re buying or selling, we’re here to help you make informed decisions.
| SAVEWire/Check | ||
|---|---|---|
| 1+ | $12,950.00 | $13,489.58 $13,489.58 |
| SAVEWire/Check | ||
|---|---|---|
| 1+ | $6,200.00 | $6,458.33 $6,458.33 |
For rhodium orders over 20 oz please call us at 1-866-971-2677.
What is Rhodium?
Rhodium is an exceptionally rare platinum group metal, with a concentration of just 0.001 parts per million in the earth's crust—making it far rarer than platinum or gold. To put this in perspective, using time as an analogy, finding 1 minute of rhodium is as difficult as finding 1 minute over 1,900 years!
Where is Rhodium Found?
Around 80% of the world’s rhodium is mined in South Africa, with Russia contributing 12%, Zimbabwe 4%, and North America 3%. Global annual production is only about 30 tonnes, or 1 million troy ounces.
Rhodium Demand
Rhodium’s primary demand comes from the automotive industry, which consumes 80% of global supply. The remaining 20% is used in chemicals, glass, electronics, and jewelry. Investment demand for rhodium remains very limited.
Why Are Rhodium Bars Rare?
Rhodium bars are becoming increasingly scarce as major producers like Baird & Co. and Pamp Swiss have ceased production. As a result, these bars are becoming more valuable over time.
Ensuring Rhodium Authenticity
Kitco guarantees the authenticity of the rhodium bars it offers, through rigorous testing methods such as x-ray and electrical conductivity. For a smooth resale process, be sure to keep your Kitco invoice as proof of purchase.
