Costco, the membership-only retail giant, has stepped up further in the precious metals market with the launch of platinum bars. After the staggering success of its gold and silver offerings, the retail chain now sells 1-ounce platinum bars for $1,089.99. If you are considering investing in platinum or increasing the amount in your collection, this is all you need to know about the new update.
How much does Costco’s platinum bar cost?
Costco’s 1-ounce platinum bar is priced at $1,089.99. While this price is roughly 8% higher than the current market spot price for platinum, which hovers around $1,004, it reflects the premium associated with purchasing from a reputable retailer. These bars are 99.95% pure platinum, Swiss-made, and accredited by the London Bullion Market Association (LBMA), making them a high-quality option for buyers.
Who can buy platinum bars from Costco?
You can purchase Costco’s platinum bars online only, and you will need a Costco membership to do so. Memberships start at $65 per year, with an executive membership priced at $130. If you’re thinking of grabbing one of these bars, note that they’re only available to U.S. buyers, and delivery restrictions apply. Costco does not ship these precious metal bullions to Louisiana, Nevada, or Puerto Rico, and limited availability may affect delivery in certain other states like New York and Utah.
Is there a limit on how many you can buy?
Yes, Costco has imposed a purchase limit for its platinum bars. You can buy up to five bars per transaction, and the limit is one purchase per member. This strategy is likely to help avoid bulk purchasing and ensure more members get the opportunity to buy these coveted bars. Costco’s previous experience with its gold bars – often selling out within hours of restocking – shows how in-demand these precious metal investments can be.
Is platinum a good investment right now?
If you are considering investing in platinum, it’s essential to weigh its current market performance. Unlike gold, which has seen a significant 42% increase over the past year, platinum’s rise has been more moderate, with a 16% increase. That said, platinum plays a unique role in the economy, being heavily used in industries like automotive manufacturing (especially in catalytic converters) and jewelry. It hasn’t enjoyed the same perception as gold when it comes to hedging against inflation or economic downturns, but it still holds significant value.
- Gold vs. Platinum: Over the past five years, gold has outperformed platinum, climbing over 70%, while platinum has had more volatile pricing. However, analysts expect that platinum could see renewed demand, especially in the industrial sector.
- Costco’s Appeal: One key reason for purchasing platinum through Costco is the trusted reputation of the retailer. For many, the convenience of buying online and the assurance that they’re purchasing a certified product outweigh the slight premium.
Why Costco is selling platinum bars
Costco’s entry into the precious metals market isn’t entirely surprising, given the retailer’s previous success with gold bars and silver coins. In 2023, Wells Fargo reported that Costco was selling as much as $200 million worth of gold and silver monthly. Following this strong demand, it makes sense that Costco would branch out into other precious metals like platinum.
Richard Galanti, Costco’s former CFO, mentioned that demand for gold bars was so high that customers were calling to ask about availability – CNBC News. The company’s pivot into platinum reflects a broader strategy to capitalize on the ongoing interest in precious metals as a store of value in uncertain economic times.
Can you make money buying platinum?
For many years platinum has been perceived positively as an under-priced asset, and some investors think this is a good time to purchase it before its pricing skyrockets. However, investing in precious metals is the same as any other investment and you need to consider the risks involved. Although platinum’s price has fluctuated to a greater extent when compared to gold, its application in industries such as car production and clean technologies make it possible for it to have future growth.
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