Costco has expanded its precious metals selection by adding Swiss-made platinum bars to its inventory, alongside their already popular gold bars and silver coins. The 1-ounce platinum bars are currently priced at $1,089.99 and are only available for purchase online. However, due to regulations, the bars cannot be delivered to customers in Louisiana, Nevada, or Puerto Rico. Interested buyers must also have a Costco membership, which can cost between $65 and $130 a year. The expansion into platinum comes after the success of their gold bars, which have been selling out within hours of being restocked since their launch in August 2023.
Analysts at Wells Fargo have reported that Costco is selling as much as $200 million worth of gold bars each month, reflecting the high demand for precious metals as investments. On the company’s earnings call in September 2023, Richard Galanti, then-chief financial officer of Costco, acknowledged the popularity of their gold bars, noting that they are often sold out within hours of being listed on the website. Costco has limited the purchase of gold bars to two per member to manage the high demand and ensure fairness in distribution.
While the price of gold has risen significantly in recent years, with an increase of over 40% in the past year and 70% in the last five years, the price of platinum has been fluctuating. Platinum has seen a 15% increase in value over the past 12 months but has dropped more than 8% since reaching a peak of over $1,100 earlier in 2024. This volatility in platinum prices may present both risks and opportunities for investors looking to diversify their portfolios with precious metals. Costco’s expansion into platinum bars reflects the company’s commitment to offering a diverse range of investment options for its customers.
The addition of platinum bars to Costco’s inventory further solidifies the company’s presence in the precious metals market, providing customers with more options for investing in physical assets. The availability of platinum bars alongside gold and silver coins caters to a wider range of investors looking to diversify their portfolios and hedge against economic uncertainties. With the success of their gold bars, Costco has demonstrated its ability to capitalize on market trends and meet the growing demand for precious metals among consumers.
Costco’s foray into the precious metals market aligns with the overall trend of increasing interest in alternative investments, particularly in times of economic uncertainty. As traditional investments such as stocks and bonds face volatility, many investors are turning to precious metals as a reliable store of value. The rising popularity of gold and now platinum bars at Costco reflects this growing trend and the company’s ability to adapt to changing consumer preferences. By offering a range of precious metal options, Costco is positioning itself as a one-stop shop for investors looking to diversify their portfolios with physical assets.
In conclusion, Costco’s decision to venture into the precious metals market by adding platinum bars to its inventory demonstrates the company’s commitment to offering a diverse range of investment options for its customers. The success of their gold bars and silver coins, coupled with the rising popularity of precious metals as alternative investments, underscores the demand for physical assets in times of economic uncertainty. Costco’s expansion into platinum bars reflects the company’s ability to adapt to market trends and capitalize on opportunities for growth. With the value of precious metals continuing to rise, Costco’s offerings provide customers with a convenient and reliable way to invest in tangible assets.
