In a move to accommodate the growing interest among consumers, Costco has broadened its selection of precious metals, introducing an array of new gold and silver coins and bars from renowned mints around the world to reflect the increasing interest in tangible assets.
Costco is leveraging its membership model so that it can offer competitive pricing on precious metals while still providing its Executive Members with cash-back rewards that can be accrued alongside credit card points. This combination is helping to undercut traditional coin dealers and precious metals retailers.
This move by Costco follows a broader trend of growing consumer interest in precious metals as both an investment and long term store of value. The coin offerings include both gold and silver coins from the US Mint and the Royal Canadian Mint.
Costco Gold Coins
The new lineup of investment-grade bullion coins includes the American Gold Eagle and Canadian Maple Leaf, along with various sizes of gold bars from PAMP Suisse and the RAND Refinery. These simple offerings allow competitive pricing that aligns with Costco’s commitment to value.
The U.S. Mint began minting bullion coins for investors in 1986 after Congress passed the Liberty Coin Act and Gold Bullion Coin Act.
The most popular are the American Gold Eagle and the American Gold Buffalo. These coins are significant to investors for their gold content, legal tender status, historical and aesthetic appeal. Both coins are backed by the U.S. government, ensuring their gold content and purity.
They are both highly recognized and traded worldwide, providing liquidity to investors looking for a tangible asset.
2024 1 oz American Buffalo Gold Coin
The American Gold Buffalo was first issued in 2006 as the U.S. Mint’s answer to pure gold bullion coins like the Canadian Gold Maple Leaf. It is the first 24-karat gold coin from the U.S. Mint.
It features the classic design of the Indian Head nickel or Buffalo nickel, with an image of a Native American on the obverse and an American buffalo on the reverse, both designed by James Earle Fraser.
The Gold Buffalo is 99.99% gold (24 karats), and has a face value of $50 and is also recognized as U.S. legal tender.
One of the most recent times that the Gold Buffalo was in stock, it was priced at $2099.99. At the time, the gold spot price was trading around $2049, indicating only a $50 markup or roughly 2.5% dealer premium. Normal dealer premiums typically range from around 4% to 10% above the spot gold price. While the price beats out the national bullion dealers, the Costco gold coins have typically sold out within an hour or two as experienced investors pounce on these deals.
Costco Product Page: Item #1799474
2024 1 oz American Gold Eagle Coin
Introduced in 1986, the American Gold Eagle is available from bullion dealers in four sizes: 1 oz, 1/2 oz, 1/4 oz, and 1/10 oz. However, only the 1 oz Gold Eagle is available from Costco, making this offer limited to investors with a larger budget.
The US Mint provides investors with fractional gold coins that allow for investors having more modest budgets to invest in a long-term store of value and wealth. This variety allows investors to choose based on their budget and investment strategy.
Costco offered the 1 oz Gold Eagle in late February with a price of $2,089.99 with each member limited to just two coins. That day, the spot gold price closed at $2,036.00 per ounce, a dealer premium of $53.99 per ounce or slightly higher than 2.5%.
Typical dealer premiums on current year gold eagles range from as low as 3.5% to around 8%. When Costco Gold Eagles are available for purchase, they are typically sold out within an hour or two. The addition of the Membership Rewards for their Executive Members offers an additional 2% cash back that can later be used on future Costco purchases, including precious metals.
Costco Product Page: Item #1804545
Canadian Maple Leaf 1 oz Gold Coins
The Maple Leaf 1 oz Gold Coin is the flagship bullion investment coin from the Royal Canadian Mint. It has been a mainstay with global investors since 1979. Its .9999 fine gold content makes it one of the purest investment grade gold coins available, which can be important for some investors.
Costco’s first offering of Maple Leaf gold coins including the Queen Elizabeth Memorial obverse design from last year.
A few weeks ago, the current year issue featuring the official portrait of King Charles was made available at the price of $2,219. On the same day gold spot price closed at $2,161.71 per ounce, a premium of $57.29, which is slightly higher than the lowest available price from national bullion dealers like SD Bullion. The average premium for the Costco sale had some investors buying, with availability lasting around 17 hours.
Although the 1 oz coin is the standard, the Maple Leaf series is available in various sizes (1 gram, 1/20 oz, 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz) from a trusted and reputable online bullion dealers, offering flexibility for different investment budgets and strategies.
2024 1 oz Canada Maple Leaf Gold Coin (King Charles Design)
Costco Product Page: Item #1814006
Costco’s Silver Coins
American Silver Eagle
2024 1 oz American Silver Eagle Tube of 20 Coins
The American Silver Eagle is a one-ounce silver bullion coin issued annually by the United States Mint since 1986. A standard mint tube of Silver Eagle coins usually contains 20 coins. Each coin is one troy ounce of .999 fine silver. The coins are packed tightly in a tube to prevent movement and reduce the risk of scratching or damage during shipping.
Tubes of Silver Eagle coins are made available for sale periodically. The availability of Silver Eagle coins from Costco is limited and the pricing is typically similar to other online bullion dealers. It’s important to compare prices of Tubes of Silver Eagle Coins before making a purchase.
Costco Product Page: Item #1789494
2023 1 oz American Silver Eagle Tube of 20 Coins
Costco Product Page: Item #1799373
Canadian Maple Leaf Silver Coins
2024 1 oz Canadian Maple Leaf Silver Coin Tube of 25 Coins
Maple Leaf silver coins are our Northern neighbors’ equivalent to the Silver Eagle and are suitable as an investment or store of value. The key advantages that Maple Leaf silver coins have over the Silver Eagle are:
The Royal Canadian Mint began incorporating advanced security measures into the design of the coins in 2014, providing visual ways for investors to distinguish between fake and genuine coins.
The Silver Maple Leaf is minted with .9999 fine silver purity. While some investors prefer the four-nines purity, the extra nine does not add any extra value in today’s market.
The Maple Leaf coins were in stock on Costco’s website for a few hours recently at the price of $609.99. That puts each coin in a tube of 25 at around 24.40, with the spot price of silver that day closing at $22.08 per ounce. Typical dealer premiums are slightly higher at around $2.50 per coin.
Costco Product Page: Item #1814000
Costco’s adding more coins and bars to its lineup demonstrates the increased consumer demand for tangible investments as a store of value and wealth.
Costco aims to solidify its position in the precious metals market, among industry veterans like APMEX, JM Bullion, Bullion Exchanges and SD Bullion, offering an accessible path for its members to invest in physical gold, silver, platinum, and palladium.
Precious metals coins are government backed with a guarantee for their purity and weight. They are purposely minted as a long term store of value and wealth that have historically been an effective hedge against inflation and currency devaluation.