In April, Wells Fargo analysts estimated that Costco generated between $100 and $200 million a month after debuting its one-ounce, 24-karat gold bars.
The price of the bars, which first went up for sale a year ago in October 2023, varies depending on market value. (The price of gold was trading at $2,641.87 per ounce as of 9 a.m. EST Thursday.)
Related: ‘Typically Gone Within a Few Hours’: This $1,900 Costco Product Is Flying Off Shelves
Now, Costco is adding platinum bars to its precious metals inventory, per CNBC. The platinum bars are for sale for $1,089.99.
In March, the company also added silver coins to the lineup. Consumers can buy a 25-count pack of 2024 Canada Maple Leaf silver coins weighing one troy ounce and made of 99.99% pure silver for around $849.99 on Costco’s website.
Costco
What Is Platinum?
Platinum is a strong, precious metal that’s even rarer than gold. Its white-silver color looks like silver, but it’s much heavier. While the metal is often used for jewelry, it is resistant to corrosion and doesn’t tarnish with heat, so it is widely used to make car parts and laboratory vessels.
Costco’s platinum bars are selling for $1,089.99 each, slightly more than its press time value of around $1,000 per ounce.
Should You Buy Costco’s Platinum Bars?
Platinum is used to make catalytic converters for cars and has many other commercial uses, so experts agree demand could remain strong.
However, MarketWatch reports that while many advisors view metals in a portfolio as a hedge against inflation, financial experts often suggest buying them as an ETF, not an actual bar. That’s because holding the physical item means added headaches like finding proper storage and having a harder time when you want to sell.
Still, Jimmy Lee, chief executive officer of the Wealth Consulting Group, an advisory firm, told the outlet that “a certain segment wants to own some physical stuff” with today’s economic volatility.
Source: entrepreneur.com