Rashi Mehta
Costco is expanding its foothold in the precious metals market, now offering Swiss-made platinum bars alongside its popular gold bars and silver coins. Priced at $1,089.99, the 1-ounce platinum bars are available exclusively online to Costco members. This move follows the company’s successful gold bar launch in August 2023, with the bars selling out within hours of restocking. As Costco continues to capitalize on the growing demand for precious metals, its entry into platinum reflects both market volatility and the wholesaler’s strategy to meet the diverse investment interests of its members.
Costco Expands Precious Metals Offerings with Platinum Bars
Costco is continuing its venture into the precious metals market by introducing 1-ounce platinum bars, priced at $1,089.99. This new addition follows the successful rollout of gold bars and silver coins in August 2023. Unlike its in-store products, the platinum bars are available exclusively online, but with delivery restrictions in Louisiana, Nevada, and Puerto Rico. Costco also maintains its membership-only purchasing model, requiring shoppers to pay an annual fee between $65 and $130 for access.
The move into platinum comes after the retailer’s gold bars sold out rapidly after each restock, reflecting strong demand. Costco’s former CFO, Richard Galanti, noted that the gold bars often disappear within hours of being posted online, with limits of two bars per member. This surge in demand for gold has pushed Costco further into the precious metals market, positioning it to attract customers seeking alternative investment options.
Precious Metals: A Booming Market for Costco
The precious metals market has been a lucrative venture for Costco, with the wholesaler reportedly selling $200 million worth of gold bars monthly as of April 2023. Analysts at Wells Fargo have highlighted this significant contribution to Costco’s revenue. Gold’s value has risen sharply, increasing by over 40% in the past year, making it an attractive investment as economic uncertainty continues to drive interest in safe-haven assets.
Platinum, on the other hand, has experienced a more volatile market. Over the last 12 months, the value of platinum has risen by 15%, though it has dipped 8% since hitting its peak in early 2024. Despite its price fluctuations, platinum remains an appealing option for investors diversifying their precious metal portfolios. Costco’s entry into the platinum market reflects its confidence in consumer interest, especially with the wholesaler’s growing reputation as a go-to source for high-demand precious metals.
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