Costco is selling platinum bars as it expands its precious metals business after huge success selling gold
Costco is diversifying its precious metals business by selling one-ounce bars of platinum for $1,089.99.
The retailer is selling the item online, according to a web listing.
According to the listing, the item, which is only available to Costco members, is 999.5 pure platinum and Swiss-made. The bar features an image of Lady Fortuna, the goddess of chance, luck, and fate.
While the price of platinum is about flat year-to-date, it is up 14% over the past year, with futures trading at about $1,000 per ounce on Thursday.
Costco sales of the one-ounce platinum bar appear to have begun sometime in the past two months, with the product already racking up 14 five-star reviews from verified purchasers.
“Great addition to any precious medals collector. I have purchased gold coin and bars, this is 1st I spotted the platinum bar on here. It seemed to be fair priced and good deal with the cash rewards back!” one buyer said in their review.
Costco imposes a limit of one transaction per membership, with a maximum purchase of five bars.
The sale of platinum bars comes about a year after Costco started selling gold bars and silver coins, and it’s grown into a big business for the company, as it typically sells out of its gold inventory in just a few hours once the product goes online.
“I’ve gotten a couple of calls that people have seen online that we’ve been selling gold – 1-ounce gold bars. Yes, but when we load them on the site, they’re typically gone within a few hours and we limit two per member,” Costco CFO Richard Galanti said in an earnings call last year.
Costco’s gold and silver sales have surged to $200 million a month, B-17 previously reported.
But while the company is selling a lot of precious metals, it’s probably not making much of a profit from them, which is not unique to its operating model of relying on its membership fees for profits.
“Pricing at that level and shipping costs suggests it’s a very low profit business at best,” Wells Fargo retail analyst Edward Kelly said earlier this year.
