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motocat
04-29-2016, 04:03 PM
Rhodium bars are just as easy to store as gold. However, you have buy sell spreads at $200 -- or about 10x what they are for gold. This is one reason I did not buy Rhodium at the lows (got plat instead).

Yes, I understand that when there is less liquidity -- spread is higher. But 10x higher? For non-numismatic industrial bars? Even the Rhodium ETF's have a high spread -- far higher then certain others ETF's that are not more widely traded.

Why is this? Can someone not profit greatly from less of a spread? Anyone has interest in becoming a metals dealer with particular emphasis on Rh -- so maybe they can make good profit on a mere $100 spread, and become known as the "go to" dealer of Rhodium? (In this way -- they can make a name -- among so many gold dealers, maybe even capture some of that larger bullion market by standing out on Rhodium -- and Palladium and Platinum for that matter?)

Davidwd
04-29-2016, 04:47 PM
The manufacturing costs are so high with such high melt temperatures, the premium is not a percentage so the premium gets proportionally less as the price increases. I feel the premium is worth it for such a rare metal with such potential.

CheGuevara
05-01-2016, 09:19 PM
Even if you bought at the low of $635, you are still down $100 and that is the problem. I used to think Rh might see $400 but that now seems very unlikely. But in PGM, better to buy mining shares than take physical bullion. Spreads are too high. Rh is a different bag of worms... You do need bars or pool, but I would go pool.

motocat
05-02-2016, 11:34 PM
The manufacturing costs are so high with such high melt temperatures, the premium is not a percentage so the premium gets proportionally less as the price increases. I feel the premium is worth it for such a rare metal with such potential.

Platinum seems to have as much potential -- without that terrible spread. I was thinking Rhodium was the better bet -- but then factoring in the buy-sell loss -- and any advantage disappeared. Also -- platinum has more non-industrial uses in bullion and jewelry -- Rhodium is just weird. Yeah, if you have some advantageous knowledge on likely future prices -- use it and get Rhodium if you know the right timing. I don't. Plus, plat just looks more pretty.