How to Buy Rhodium
Rhodium is a rare precious metal — so rare that many investors have never heard of it, let alone know where to buy rhodium. In this article we discuss where investors are able to buy rhodium bullion, the pros and cons of investing in rhodium, and the advantages of buying rhodium online.
Where Can I Buy Rhodium Bullion?
The scarcity of rhodium means rhodium products are rare. Only a small number of refiners even attempt to manufacture rhodium bullion bars and rounds. The Baird Mint, in the United Kingdom, is currently the worlds largest producer of rhodium bullion for the investor markets. It is not possible to buy rhodium direct from the mint, however, so in order to find some we need to look at the product selections of bullion dealers.
Buying Physical Rhodium in a Brick and Mortar Bullion Dealer
Most physical gold and silver dealers do not carry rhodium. They simply do not sell enough rhodium to justify offering it. Those that do usually have gigantic markups, making it not cost-effective to buy rhodium from a local bullion store.
Buying Rhodium Bullion from an Online Bullion Dealer
Given the scarcity of rhodium, it is unsurprising that few online bullion stores carry the metal. Some of the best online bullion dealers, like CBMint and Provident, do carry rhodium bullion bars. Unlike brick and mortar stores, the best online dealers have low price premiums on rhodium bullion, meaning you are able to buy rhodium for close to the rhodium spot price.
The largest rhodium bar we were able to find was a Baird 5 ounce rhodium bar. Given that the current rhodium spot price is close to that of gold, this is a valuable product, indeed. If rhodium prices continue to climb, there could be a run on rhodium bullion similar to the recent run on silver. We conducted Reviews of Online Rhodium Bullion Dealers to find the best place to buy rhodium online. The factors we took into account were rhodium prices, shipping times, user experience, and customer service.
The Future of Investing in Rhodium
Now that we have discussed where to buy rhodium and the advantages of buying rhodium online, we look to the future to try to get a glimpse of what will happen to rhodium prices. Significantly, 80% of the annual global rhodium production happens in one country, and that output is in decline. We have also found, per a 2014 Deutsche Bank report, that annual rhodium consumption (by industry and investment) is expected to exceed annual output until the year 2020. An increasing demand for rhodium combined with a shrinking supply can only mean one thing — a rhodium price boom in the making.