In a move to further expand its catalogue of precious metals, Costco has begun to offer platinum bars and coins, according to reports from KXAN. Following the significant sales of gold and silver, the retail giant has listed 1-ounce platinum bars and coins for purchase on its website, exclusively to its members. The new offerings comprise 999.5 pure platinum, with the bars produced in Switzerland.
These Swiss-made platinum bars carry a selling price of $1,089.99, which presents roughly an 8% premium over the current market value of platinum, priced at about $1,004 per ounce according to financial data from FactSet. The member-only products, which are not eligible for return or refund, have proven quickly to sell out, replicating the demand trend observed when Costco introduced gold bars. This product generated over $100 million in sales in a single quarter. Additionally, due to their popularity, a community on Reddit has emerged dedicated to monitoring the stock levels of these precious metals at Costco.
While the allure of investing in precious metals has drawn in many of Costco's shoppers, purchasing these platinum items comes with restrictions. As reported by CBS News, "Costco says it is limiting members to one purchase, with a maximum of five platinum bars per transaction." There are delivery limitations as well, with certain states like Nevada, Louisiana, and Puerto Rico being excluded. Other locations across the United States are also facing availability issues, highlighting the product's high demand.
Investors and buyers should consider that platinum hasn't mirrored the robust price performance of gold over the past year; it saw a 16% increase as opposed to gold's 42% rise. Despite this, platinum maintains its value in both the jewelry market and industrial uses, such as in catalytic converters. It is worth noting that for those interested in investing, Costco's price point may appear significantly above the spot price, a potential downside for cost-aware shoppers. Nevertheless, the Costco website on Wednesday, stated the platinum bar as "product not available," signifying a strong initial reception from consumers.
