Costco’s Selling Platinum Bars – The Price Will Leave You Drooling for More

Costco has added another item to its growing list of premium products, and this one shines bright: platinum bars. Building on the success of last year’s gold bars, which frequently sold out within hours, the retail giant is now offering 1-ounce platinum bars to its customers. But if you’re thinking about adding platinum to your portfolio, you may want to act fast — this new addition is already creating buzz and quickly becoming a hot commodity.

Costco’s Latest Precious Metal Offering

The platinum bars being sold at Costco are no ordinary bars. These 1-ounce bars are 999.5 pure platinum, produced in Switzerland by a refiner accredited by the London Bullion Market Association (LBMA). The LBMA is a global organization that sets the standards for quality and ethical trading in the precious metals industry. This means Costco’s platinum bars are not only top quality but also hold a certain level of prestige in the market.

Costco’s foray into precious metals began last year when it introduced gold bars, which were so popular that they often sold out within hours of being listed online. Following the success of its gold offerings, Costco added silver coins to the mix. According to estimates by Wells Fargo, the retailer was selling up to $200 million worth of gold and silver monthly. Now, with platinum in the mix, Costco is further expanding its footprint in the precious metals market.

How Much Does It Cost?

The price of Costco’s platinum bars is set at $1,089.99 per bar. It’s important to note that this price is about 8% higher than the current market value for platinum, which sits at $1,004 an ounce, according to FactSet, a financial services company. This slight premium might be due to factors like the quality of the bars and their LBMA accreditation. Plus, being able to purchase platinum from a trusted retailer like Costco could offer a sense of security that many buyers find valuable.

The platinum bars are sold exclusively online, but there are some delivery restrictions. Costco currently doesn’t ship these bars to Nevada, Louisiana, or Puerto Rico. In addition, as of Thursday, the retailer’s website also noted that delivery is unavailable in certain parts of the U.S., including states like New York and Utah. Costco didn’t immediately provide comments on why these restrictions are in place.

Is There a Purchase Limit?

Yes, there is a limit. Costco has set a cap on how many platinum bars a member can purchase at one time. You are allowed to buy up to five bars per transaction, which ensures that more members have the chance to purchase them before they sell out.

This limitation also echoes the strategy Costco used when it first started selling gold bars. By capping the number of items each customer can buy, Costco aims to prevent bulk purchases that could quickly drain its stock, giving more customers the chance to invest in precious metals.

Is Platinum a Good Investment?

While platinum hasn’t gained the same attention as gold in recent years, it still holds value in various sectors. Besides being used in jewelry, platinum plays an important role in industrial applications, particularly in catalytic converters for vehicles. However, its recent market performance hasn’t been as strong as gold’s, which is often seen as a safe-haven asset in times of inflation and market volatility.

Over the past year, platinum prices have risen by about 16%, compared to a 42% surge in gold prices, according to FactSet. This could mean that platinum has potential for future growth, especially if demand in the automotive and industrial sectors increases. Still, investors may find themselves paying a slight premium when buying through Costco, with its price being higher than the current spot price.

Final Thoughts

Costco’s expansion into the precious metals market is an exciting development for both members and investors. With the introduction of platinum bars, the retail giant is offering more options for those looking to diversify their portfolios. However, as with any investment, it’s crucial to do your research and consider the market conditions before making a purchase.

If you’re interested in buying one of Costco’s platinum bars, be prepared to act quickly. Based on the success of the gold bars, these may not stay in stock for long. Whether you’re a seasoned investor or just dipping your toes into precious metals, Costco’s latest offering is sure to catch the attention of many buyers.