In recent years, Costco has become more than just a one-stop shop for groceries and bulk household items—it’s now a destination for precious metal investors. Costco’s foray into selling 1-ounce gold bars began in 2023, and the demand for them has been nothing short of a gold rush.
With prices soaring and a steady stream of customers eager to invest in tangible assets, Costco’s gold bars have been flying off the shelves faster than they can be restocked.
More recently, the company has expanded its precious metal offerings to include platinum bars to their unique inventory.
The Popularity of Costco Gold Bars
Costco’s decision to sell gold bars proved to be a masterstroke. The 1-ounce PAMP Suisse Lady Fortuna gold bars were priced at just under $2,000 when they began selling them last year.
Despite gold prices surging to over $2,600 per ounce, the company says that demand remains strong. Costco undercuts traditional precious metal dealers premiums while allowing members to receive additional perks in the form of cash back and rebates.
Member are allowed to take advantage of both membership rewards and credit card points to accumulate rebates which helps to further reduce the premiums.
One notable example comes from a 33-year-old customer named Sourav Sethia, who explained to Bloomberg that he frequently takes advantage of pullbacks in the price of gold after receiving phone calls from his local warehouse whenever they restock gold bars.
Costco’s Expansion into Platinum Bars
Costco’s success with gold prompted the retailer to expand its offerings by introducing platinum bars. The PAMP Suisse 1-ounce platinum bars, priced at $1,089.99, are available exclusively online and come with a one-transaction, five-bar limit per member.
PAMP Suisse Platinum Bars are made of .9995 fine platinum and meet the standards set by the London Bullion Market Association (LBMA), ensuring their quality and authenticity.
Although platinum is less popular with investors than gold, its introduction marks a significant step in bringing greater awareness to precious metals as a store of value.
With Costco entering the platinum market, the retailer is likely to see a similar level of enthusiasm from its members as it did with gold.
Combining Costco Membership and Credit Card Rewards
One of the most appealing aspects of buying gold and platinum bars from Costco is the ability for members to combine their Costco Executive Membership rewards with Costco Citi credit card points to maximize rebates and savings. Here’s how savvy shoppers are leveraging these rewards to gain even more from their investments:
Precious Metals Rebates Combining 2% Executive Membership Reward Plus 2% Citi Credit Card Cashback
While the annual Executive Membership costs $130, it includes a 2% annual reward on all purchases, including gold and platinum bars.
Additionally, customers who have the Costco-branded Citi credit card can earn an additional 2% cashback.
As of October 2024, Costco’s gold bars are selling at a 1.6% premium to the spot price, while the average premium from traditional bullion dealers is around 4.5%.
Members can receive as much as 4% back when combining the rewards, effectively acquiring gold bars for below spot price.
A Safe Haven for Investors
Costco’s entry into the precious metals market makes them more accessible to everyday investors.
Many of Costco’s members have higher household incomes and are already accustomed to the warehouse retailer’s bulk pricing model.
As Stefan Gleason, CEO of Money Metals Exchange, pointed out, only a tiny percentage of Americans own gold and silver outside of jewelry, but Costco’s offerings could change that. He estimates that increasing ownership to even 5% to 10% would dramatically impact the market.
The Future of Costco’s Precious Metal Sales
Costco sold more than $100 million in gold bars between September and November 2023 alone, proving its foray into precious metals to be highly successful.
With the introduction of platinum bars and plans to expand its precious metals lineup further, it’s clear that Costco sees an opportunity to capitalize on the growing demand for tangible assets.
While the Commodity Futures Trading Commission (CFTC) warns that gold is not a “safe” investment and can fluctuate based on market demand, many Costco members view the metal as a hedge against instability. As one customer, Johnny Lee, put it, buying gold bars at Costco is an easy way to make a purchase, knowing the historical value of gold as a store of wealth.
As Costco continues innovating in the precious metals market, its customers benefit from the retailer’s competitive pricing, rewards programs, and the convenience of purchasing gold and platinum alongside their weekly groceries. Whether you’re a seasoned investor or a first-time buyer, Costco’s offerings provide an accessible and rewarding way to diversify your portfolio with precious metals.
