Costco recently announced the addition of Swiss-made platinum bars to its selection, alongside its popular gold bars and silver coins. The 1-ounce platinum bars are priced at $1,089.99 on the company’s website, but are only available for purchase online and cannot be delivered to certain locations like Louisiana, Nevada, and Puerto Rico. Interested buyers will also need a Costco membership, which ranges from $65 to $130 a year. The move into the precious metals market is not surprising, given the success of the gold bars that launched in August 2023.
Within just two months of launching gold bars, Costco was reportedly selling as much as $200 million worth of gold bars a month. The high demand for gold bars led to shortages, with the bars selling out within hours of a restock. Richard Galanti, then-chief financial officer of Costco, mentioned receiving calls from customers eagerly looking to purchase 1-ounce gold bars online. Due to the limited availability, the company typically allows customers to purchase a maximum of two bars per member.
The price of gold has seen a significant increase of over 40% in the past year and over 70% in the last five years, making it a lucrative investment for many. On the other hand, the price of platinum has experienced more volatility in recent years. The value of platinum has risen by more than 15% over the past 12 months, although it has dropped by more than 8% since reaching a peak of $1,100 earlier in 2024. Costco’s decision to introduce platinum bars may appeal to customers looking to diversify their precious metals investments.
Costco’s expansion into the precious metals market reflects a growing interest in alternative investments, particularly as traditional investments like stocks and bonds face uncertainty. With the increased demand for gold bars and the introduction of platinum bars, Costco is catering to customers looking to purchase physical assets as a hedge against inflation and economic instability. The success of the gold bars indicates a potential demand for platinum bars, offering customers more options for diversifying their investment portfolios.
As Costco continues to attract customers with its offering of precious metals, the wholesaler is capitalizing on the market trends and investor interest. The company’s strategy of limiting the availability of gold bars to two per member has generated excitement and anticipation among customers eager to purchase these valuable assets. With the addition of platinum bars to its selection, Costco is expanding its reach in the precious metals market and positioning itself as a trusted source for investors seeking to buy physical assets.
In conclusion, Costco’s introduction of platinum bars alongside its gold bars and silver coins demonstrates the company’s commitment to meeting the demand for precious metals among customers seeking alternative investments. The success of the gold bars and the rising interest in platinum highlight the growing appeal of physical assets as a means of diversifying investment portfolios. With the price of precious metals on the rise, Costco’s expansion into the market is likely to attract more customers looking to purchase these valuable assets for long-term investment purposes.
