Costco has ventured into the sale of platinum bars following the success of its gold bars. The company has introduced 1-ounce Swiss-made platinum bars priced at $1,089.99 (A$1,587.93) on its website, expanding its range of precious metal offerings alongside gold bars and silver coins. The availability of gold bars on Costco’s website began in August the previous year, with estimates suggesting significant monthly sales figures for gold bullion bars.
Richard Galanti, the then-chief financial officer of Costco, acknowledged the swift sales turnover of 1-ounce gold bars on the company’s website. The surge in gold value by more than 40% in the past year and over 70% in the last five years has drawn attention to precious metal investments. In comparison, platinum’s value has also seen a steady rise of over 15% in the past 12 months, closing at $1,019.60 (A$1485.39) an ounce.
Costco’s online platform enforces a one-transaction limit per membership with a maximum purchase of 5 units for platinum bars. The company’s Australian operations have shown robust growth, with 15 stores nationwide and a notable sales increase of 20% to $4.4 billion in 2023 compared to the previous year.
The move to offer platinum bars aligns with shifting market trends and investor interests in diversifying precious metal portfolios beyond gold. The allure of platinum lies in its scarcity and unique industrial applications, making it a coveted asset for investors seeking alternative safe-haven investments.
Industry experts view Costco’s entry into platinum bullion sales as a strategic move to tap into the growing demand for diversified investment options and hedge against economic uncertainties. The company’s success in selling gold bars underscores the potential for platinum bars to attract a similar investor base seeking tangible assets in volatile markets.
As global economic conditions continue to influence investment strategies, the appeal of precious metals like platinum remains robust. Investors are increasingly turning to tangible assets like platinum bullion as a means to safeguard wealth and diversify portfolios amidst market volatility and inflationary pressures.
The introduction of platinum bars by Costco reflects a broader trend in the precious metals market, where investors are exploring alternative assets beyond traditional options like gold and silver. The rising interest in platinum underscores its status as a valuable commodity with unique properties that appeal to both industrial and investment sectors.
Costco’s foray into platinum bullion sales signals a strategic shift towards offering a diverse range of investment products to cater to evolving investor preferences. The company’s entry into the platinum market is poised to enhance its position as a leading provider of precious metal investments, further solidifying its presence in the bullion market.