Costco Wholesale (COST) is increasingly delving into the precious metals sector. While gold bars and silver coins previously topped shoppers’ minds, the retailer is now adding a third precious metal: platinum.
Costco sells the one-ounce platinum bars for $1,089.99 on its website, alongside its popular gold bars and silver coins. The platinum bars can only be purchased online for loyalty members. They cannot be delivered to Louisiana, Nevada or Puerto Rico.
In April, the company almost literally achieved gold. At the time, Costco was reportedly making $200 million every month from selling gold bars, according to a Wells Fargo (WFC) research note.
Costco started selling its gold bars last September for $2,000 each. In late January, it began offering one-ounce silver coins in a pack of 25 for $675.
The company recently reported strong quarterly results, which were primarily driven by its e-commerce business, which includes categories such as: appliances, home furnishings, gift cards and gold and silver.
Gary Millerchip, Costco’s chief financial officer, told investors during the company’s Sept. 26 earnings call that Costco has helped customers by maintaining low prices on essential products such as chicken, macadamia nuts, Spanish olive oil and two-pack baguettes.
“We want to be the first to lower prices and the last to raise prices,” Millerchip said.
However, the commitment to low prices comes as Costco is increasing its membership fee for the first time in seven years. As of September 1, individual memberships now cost $65, up from $60, while executive memberships have increased from $120 to $130.
Millerchip said the timing of the membership increase was “very deliberate,” noting that the two-year delay was partly due to the impact of COVID-19 and rising inflation. Costco typically increases its membership fee every five years.
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