Costco, a prominent US retail chain, has recently expanded its range of investment options by introducing platinum bullion bars and coins alongside its existing gold bullion offerings. This move follows the success of its gold investment products launched in 2023, which quickly gained popularity among members. The newly available platinum products include 1 ounce platinum bars and coins, such as the 999.5 fine Fortuna platinum bar minted by PAMP Suisse and the 2024 1 ounce platinum Canadian Maple Leaf coin from the Royal Canadian Mint.

Each platinum bar is meticulously crafted, registered, and packaged with an Assay Certificate to guarantee its metal content and weight accuracy. Costco has imposed a purchase limit of no more than five bars or coins per member to manage the limited quantity available. Although platinum is not as mainstream as gold, its industrial applications in catalytic converters for reducing vehicle emissions, as well as its use in jewelry and various industrial processes, make it a versatile investment choice with practical uses beyond the financial realm.

The introduction of platinum bullion by Costco reflects a broader trend of precious metals gaining traction as essential components of investment portfolios, particularly for investors seeking to diversify and hedge against inflation and market uncertainties. Notably, platinum, like gold, can be included in retirement accounts in the US, offering tax advantages to investors holding physical assets. Despite platinum’s price appreciation lagging behind that of gold and silver in recent times, some analysts view it as an undervalued asset poised for increased demand due to its industrial relevance and supply constraints.

As of October 7, the spot price for platinum stood at around US$975 per ounce, with Costco pricing its one-ounce platinum products at US$1,089.99. In addition to platinum, Costco has witnessed a surge in gold bullion sales, with over US$100 million worth of gold bars sold in a single quarter. The appeal lies in Costco’s competitive pricing, lower premiums above spot prices, and attractive membership benefits, driving significant demand as gold prices soar amidst economic uncertainties and inflation concerns.

The availability of platinum bullion at Costco not only expands access to precious metals investments but also underscores the growing interest in diversifying investment portfolios with tangible assets. With the allure of precious metals as a safe-haven investment, Costco’s strategic move caters to the evolving preferences of retail investors looking to safeguard their wealth and capitalize on the intrinsic value of metals like platinum in a dynamic economic landscape.