Costco, a prominent US-based retail chain, has recently expanded its range of precious metals investments by including platinum bullion bars and coins in its product offerings. This move follows the successful introduction of gold bullion investments in 2023, which quickly gained popularity among members. The newly available platinum products, such as the 1-ounce platinum bar and the 2024 1-ounce platinum Canadian Maple Leaf coin, are now accessible for purchase through Costco’s online platform.

The 1-ounce platinum bar offered by Costco is a 999.5 fine Fortuna platinum bar produced by PAMP Suisse, a well-known precious metals refiner. Each bar is meticulously registered and packaged securely with an Assay Certificate to guarantee the metal content’s accuracy and weight. Additionally, Costco has included the 2024 1-ounce platinum Canadian Maple Leaf coin, minted by the Royal Canadian Mint, in its offerings. Both products are available in limited quantities, with a purchase limit of five bars or coins per member per transaction.

Platinum, often overshadowed by gold, is gaining recognition due to its diverse industrial applications, particularly in automotive catalytic converters essential for reducing vehicle emissions. Beyond industrial uses, platinum is also utilized in jewelry making and various industrial processes, making it a versatile metal for both investment and practical purposes.

Costco’s decision to incorporate platinum products in its investment options reflects a broader trend of increasing interest in precious metals among retail investors. These investors often view precious metals as a hedge against inflation and market volatility, thereby seeking to diversify their portfolios with such assets. Moreover, the inclusion of platinum aligns with the growing perception of precious metals as integral components of retirement portfolios, as platinum bars and coins can be included in tax-advantaged accounts like Individual Retirement Accounts and 401(k) plans in the US.

Despite the rising interest in platinum, the metal has not experienced the same level of price appreciation as gold and silver. Over the past year, platinum prices have seen a modest increase of just over 10%, while gold and silver prices have surged by 37% and 39%, respectively. Nonetheless, some analysts consider platinum an undervalued asset poised for increased demand as industrial requirements grow and supply remains constrained. As of October 7, the spot price for platinum was approximately US$975 per ounce, with Costco pricing its one-ounce products at US$1,089.99.

In addition to platinum offerings, Costco has witnessed a surge in gold bullion sales, with over US$100 million worth of gold bars sold in a single quarter. The retailer’s competitive pricing, low premiums, and membership rewards have attracted customers, especially amidst record-high gold prices exceeding US$2,650 per ounce. The strong demand for gold and platinum underscores investors’ attraction to these metals as safe-haven assets during times of economic uncertainty and inflation concerns.

Overall, Costco’s introduction of platinum bars and coins signifies a strategic move to diversify its precious metals investment options, catering to the growing demand for alternative assets among retail investors seeking to safeguard and enhance their portfolios.