Costco Expands Precious Metals Offerings with 1-Ounce Platinum Bars
Costco is continuing to expand its precious metals offerings with the addition of 1-ounce platinum bars to its lineup. Last year, the retailer rolled out gold bars that were incredibly popular with customers, often selling out within hours. The new platinum bars are described as 999.5 pure platinum and are Swiss-made by a refiner that has received the Good Delivery accreditation from the London Bullion Market Association (LBMA).
The popularity of Costco’s gold bars led to high demand, with the retailer struggling to keep them in stock. After adding silver coins to its lineup, it was estimated that Costco was selling as much as $200 million of gold and silver each month to its members.
Cost of Costco’s Platinum Bar
The 1-ounce platinum bar is priced at $1,089.99, but availability is limited. Costco is only selling the bars online, and delivery is unavailable in certain states like Nevada, Louisiana, and Puerto Rico. There are also restrictions on delivery in other locations, such as New York and Utah.
Purchase Limit and Investment Consideration
Customers are limited to one purchase of up to five platinum bars per transaction at Costco. While platinum is a precious metal used in jewelry and industrial items like catalytic converters, its recent performance has not been as strong as gold. In the past year, the spot price for platinum has increased by about 16%, compared to a 42% gain for gold according to FactSet data.
The current spot price for platinum is $1,004 an ounce, making Costco’s price approximately 8% higher than the market value. Despite this, platinum can still be a viable investment option for those looking to diversify their portfolio and hedge against market volatility.
Additional insight: Platinum is considered a rare and valuable metal with unique properties that make it desirable for various applications. Its versatility in industries like automotive, healthcare, and electronics can contribute to its long-term investment potential. Investors should consider the overall market conditions, supply and demand dynamics, and geopolitical factors that could impact the price of platinum in the future. Costco’s offering of 1-ounce platinum bars provides an accessible option for individuals interested in adding this precious metal to their investment portfolio.
