Costco is once again venturing into the precious metals market, expanding its offerings beyond the gold and silver bars it has sold with great success. The retail giant is now offering 1-ounce platinum bars exclusively to members for $1,089.99 through its website. The move is part of Costco’s broader strategy to diversify its product lineup and capitalize on growing demand for collectible precious metals.
Don’t miss:
A continuation of Costco’s success in precious metals
Costco entered the precious metals market in 2023 and introduced gold bars. The retailer sold more than $100 million of these bars in the first quarter of that year. More recently it added silver coins, which sold for $675. Now platinum joins the lineup with its Swiss-made bars engraved with an image of Lady Fortuna, the Roman goddess of fortune and prosperity.
Although the price of platinum has seen modest increases so far – up 15% from 2023 – the appeal of precious metals remains strong for collectors and investors. Gold has recently reached all-time highs and remains the most popular investment due to its higher appreciation rate.
However, CNN reports that Costco’s decision to sell platinum bars has less to do with competing with gold and more to do with continuing its “treasure hunt” retail strategy.
“We’re trying to create an attitude that says if you see it, buy it, because chances are it won’t be there next time,” the Costco founder once told the Wall Street Journal. “That’s the treasure hunting aspect. We buy that stuff all the time and occasionally run out of it on purpose.”
Popular: Are you rich? This is what Americans think should be considered rich.
Why platinum?
Platinum may not be as desirable as gold, but it has a unique appeal. It is a rarer metal used in industrial applications and as a form of wealth maintenance. Costco’s platinum bars are made from 999.5% pure platinum, which collectors and investors may find attractive as a diversification option.
Kelly Bania, a senior research analyst at BMO Capital Markets, told ABC News that Costco’s move to introduce platinum bars is consistent with its strategy of offering high-margin products. Platinum’s market value hovers around $1,008 per ounce, so Costco’s price tag of $1,089.99 reflects a small profit margin. However, buyers are willing to pay a premium for the convenience of purchasing precious metals from a trusted retailer.
Trending: Global Games Market Expected to Generate $272 Billion by Year End – at $0.55/share, this VC-backed startup with a user base of over 7 million investors provides easy access to this asset market.
Do you need to invest?
Investing in precious metals such as platinum comes with potential risks. Unlike stocks or bonds, precious metals do not generate income and are subject to price volatility. Additionally, selling these metals can come at a cost, making them a more complex investment for the average buyer.
Those considering platinum as an investment should do thorough research and possibly consult a financial advisor to ensure it fits their long-term goals.
Ultimately, Costco’s venture into platinum sales may be more about marketing than moving large quantities of metal. But for shoppers who enjoy the thrill of getting their hands on exclusive items, platinum bars are another example of the unique finds that make Costco a popular destination.
Read next:
UNLOCKED: 5 NEW ACTS EVERY WEEK. Click now to get the best trading ideas every dayplus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Want the latest stock analysis from Benzinga?
This article Platinum Hits Costco Shelves: Why The Retail Giant Is Selling $1,089 Bars To Its Members originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
