Costco, the warehouse retailer, has begun selling a new precious metal: platinum. The retailer’s website lists a 1-ounce PAMP Suisse Lady Fortuna Veriscan platinum bar. This marks the latest addition to Costco’s offerings of precious metals, which also include gold bars and silver coins.
The listing notes that there is a one-transaction limit of five units per Costco member, and the bars cannot be returned once purchased. Delivery is unavailable for the states of Nevada and Louisiana. The platinum bars are priced at $1,089.99 each.
In the past, Costco’s gold and silver bars have seen high demand. In September last year, then-CFO Richard Galanti mentioned that Costco’s gold bars usually sold out within hours after being listed online. The increased sales of precious metals have contributed to a boost in the retailer’s online sales in recent quarters.
Costco has stated that its e-commerce platform offers a broader selection of merchandise that complements its in-store offerings, which generally include around 4,000 items. At the end of its fourth quarter, Costco had 136.8 million cardholders globally. As Costco expands its offerings in precious metals, it continues to attract investors looking for gold, silver, and now, platinum options.
Costco adds platinum to inventory
Although the value of gold has risen consistently over the past five years, platinum has experienced more fluctuation. Platinum’s value has increased by more than 15% over the past 12 months; however, it has declined by over 8% since May 2024.
Costco announced the Swiss-made 1-ounce platinum bars are available for purchase online but cannot be delivered to Louisiana, Nevada, or Puerto Rico. Buying these bars requires a Costco membership, which costs between $65 and $130 annually. The company recently reported strong quarterly earnings, which were fueled primarily by its diverse inventory, including appliances, home furnishings, gift cards, and precious metals like gold and silver.
Gary Millerchip, Costco’s chief financial officer, told investors during the company’s Sept. 26 earnings call that Costco has been helping customers by maintaining low prices on essential items such as chicken, macadamia nuts, Spanish olive oil, and two-pack baguettes. “We want to be the first to lower prices and the last to raise prices,” Millerchip said.
The commitment to low prices comes, however, as Costco raises its membership fee for the first time in seven years. As of Sept. 1, individual memberships now cost $65, up from $60, while executive memberships increased to $130 from $120.
Millerchip said the timing of the membership hike was “very deliberate,” noting that the two-year delay was partly due to the impact of COVID-19 and rising inflation. Costco typically raises its membership fee every five years.
