Costco is again venturing into the precious metals market, expanding its offerings beyond the gold and silver bars it sold to great success. The retail giant now offers 1-ounce platinum bars for $1,089.99 exclusively to members via its website. This move is part of Costco’s broader strategy to diversify its product lineup and capitalize on the growing demand for collectible precious metals.

Don’t Miss:

A Continuation of Costco’s Precious Metals Success

Costco entered the precious metals market in 2023, introducing gold bars. The retailer sold more than $100 million of these bars in just the first quarter of that year. More recently, it added silver coins, which sold for $675. Now, platinum joins the lineup with its Swiss-made bars engraved with an image of Lady Fortuna, the Roman goddess of fortune and prosperity.

While the price of platinum has seen modest increases year to date – up 15% from 2023 – the allure of precious metals remains strong for collectors and investors. Gold has recently hit record highs and remains the more popular investment due to its higher appreciation rate.

However, CNN reports that Costco’s decision to sell platinum bars is less about competing with gold and more about continuing its “treasure hunt” retail strategy.

“We try to create an attitude that, if you see it, you ought to buy it because chances are it ain’t going to be there next time,” Costco’s founder once said to the Wall Street Journal. “That’s the treasure-hunt aspect. We constantly buy that stuff and intentionally run out of it from time to time.”

Trending: Are you rich? Here’s what Americans think you need to be considered wealthy.

Why Platinum?

Platinum may not be as sought after as gold, but it uniquely appeals. It’s a rarer metal used in industrial applications and as a form of wealth preservation. Costco’s platinum bars are made of 999.5 pure platinum, which collectors and investors might find appealing as a diversification opportunity.

Kelly Bania, a senior research analyst at BMO Capital Markets, told ABC News that Costco’s move to introduce platinum bars is consistent with its strategy of offering high-margin products. Platinum’s market value fluctuates around $1,008 per ounce, so Costco’s $1,089.99 price tag reflects a small markup. However, buyers are willing to pay a premium for the convenience of purchasing precious metals from a trusted retailer.

Story continues

Trending: The global games market is projected to generate $272B by the end of the year — for $0.55/share, this VC-backed startup with a 7M+ userbase gives investors easy access to this asset market.

Should You Invest?

Investing in precious metals like platinum carries potential risks. Unlike stocks or bonds, precious metals don’t generate income and are subject to price volatility. Additionally, selling these metals can involve fees, making them a more complex investment for the average buyer.

Those considering platinum as an investment should do thorough research and possibly consult a financial advisor to ensure it fits their long-term goals.

Ultimately, Costco’s venture into platinum sales may be more about marketing than moving large quantities of the metal. But for shoppers who enjoy the thrill of snagging exclusive items, platinum bars are another example of the unique finds that make Costco a popular destination.

Read Next:

UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.

Get the latest stock analysis from Benzinga?

This article Platinum Hits Costco Shelves: Why The Retail Giant Is Selling $1,089 Bars To Its Members originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.