Costco adds platinum bars to precious metals offering after skyrocketing gold sales
(Kitco News) – After the runaway success of their gold bars, U.S. retail giant Costco has now expanded its precious metals offering by adding bars of solid platinum.
The one-ounce bars are available for purchase by Costco members through the company’s website at a cost of $1,090. The bars are listed as 999.5 pure platinum and are made by Swiss metals producer MKS PAMP.
According to the web listing, members can purchase one bullion bar per transaction and a maximum of five bars per member.
"Great addition to any precious medals [sic] collector," one buyer said in their review. "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!"
In late September, the retail wholesaler reported net sales of $78.2 billion for its fourth quarter and fiscal year-end of 2024. Sales are up 1.0% compared to net sales of $77.4 billion in the fourth quarter of fiscal year 2023.
The store’s bullion products continue to drive its online sales, with the company stating that its gold sales increased by “double digits” over the last three months.
During the Sept. 26 conference call, Costco CFO Gary Millerchip said that gold was a "meaningful tailwind" to e-commerce sales in the quarter. The store’s online gold bullion products often sell out rapidly.
The success of the precious metal is even attracting the attention of some analysts. Greg Melich, Senior Managing Director at Evercore ISI, asked a tongue-in-cheek question: “You called out the gold bullion again. I'm just curious, are there any plans to maybe bring Kirkland Signature into the gold bullion market?”
“No plans at this time,” responded Ron Vachris, President and CEO of Costco. Kirkland Signature is Costco's large private-label business.
Costco’s bullion sales have attracted significant attention this year as gold prices have pushed above $2,000 an ounce, setting consecutive record highs. According to analysts, this attention has driven online sales as well as new membership sign-ups.
Although the company doesn’t publish exact sales numbers for its gold bullion, in April, equity analysts at Wells Fargo estimated that Costco is selling between $100 and $200 million worth of one-ounce bars and coins each month.
Some analysts note that Costco gold bullion offers an advantage compared to traditional dealers, as customers can earn extra rewards as members, including cash back on their bullion purchases.
Costco is also adding more unique bullion products. Last week, the store announced a partnership with the Royal Canadian Mint to offer its members the first opportunity to acquire a Gold Maple Leaf Single Mine bullion coin. The gold in the coin comes from Canadian mining giant Agnico Eagle's Detour Lake mine in Northern Ontario.
Originally sourced from Kitco News