Costco is expanding its selection of precious metals by adding Swiss-made platinum bars to its offerings. These 1-ounce platinum bars are priced at $1,089.99 and are currently available for purchase on Costco’s website. However, they are only sold online and cannot be delivered to certain states such as Louisiana, Nevada, or Puerto Rico. In order to buy these platinum bars, customers must have a Costco membership, which costs between $65 and $130 per year. This move comes after the success of Costco’s gold bars, which have been selling out within hours of being restocked.
In August 2023, Costco introduced gold bars to its selection and quickly saw a surge in demand. Analysts from Wells Fargo reported that Costco was selling up to $200 million worth of gold bars each month. Due to the high demand, the gold bars would sell out within hours of being added to the website, with a limit of two bars per member. This success has likely motivated Costco to expand into the platinum market and capitalize on the growing interest in precious metals.
The price of gold has been on the rise, increasing by more than 40% in the past year and over 70% in the last five years. On the other hand, the value of platinum has been more volatile in recent years. While platinum has seen an increase of over 15% in the past 12 months, it has dropped more than 8% from its peak of $1,100 earlier in 2024. Despite this fluctuation, there is still a demand for platinum as an investment option, and Costco is looking to meet the needs of consumers by offering these Swiss-made platinum bars.
This expansion into the precious metals market is part of Costco’s strategy to diversify its product offerings and attract new customers. In addition to offering a wide range of consumer goods at affordable prices, Costco is now tapping into the investment market with the introduction of gold and platinum bars. By providing access to these valuable commodities, Costco is catering to customers who are looking to invest in precious metals as a hedge against inflation or economic uncertainty.
The success of Costco’s gold bars and the high demand for these products demonstrate the growing interest in precious metals as an investment option. With the introduction of platinum bars, Costco is further solidifying its position in the market and expanding its reach to a wider range of investors. As the value of precious metals continues to fluctuate, Costco is adapting its offerings to meet the changing demands of consumers and provide them with new investment opportunities.
Overall, Costco’s foray into the precious metals market with the introduction of platinum bars is a strategic move to capitalize on the growing interest in these commodities. By offering high-quality Swiss-made platinum bars alongside its gold bars, Costco is providing customers with a diverse range of investment options. With the value of precious metals on the rise, Costco is well-positioned to attract new customers and expand its presence in the investment market.
