In 2023, Costco began offering members 1 oz gold bars from PAMP Suisse and Rand Refinery via flash sales on the company’s website, blending bulk shopping with precious metals. This surprising addition to Costco’s diverse product line has sparked various reactions from shoppers and investors alike.
Earlier this week, various reports emerged online that the Member’s Only retailer has increased its product offerings in the precious metals space to include tubes of American Silver Eagle coins.
There were many posts in online forums and on social media with screenshots showing user purchases. Some lucky members could receive fast fulfillment and shipping that orders began arriving today.
In various mail call reports in the r/Silverbugs forum on Reddit, buyers reported receiving shipments of American Silver Eagle Coin tubes containing 20 coins from the current 2023 mintage year.
The introduction of precious metals at Costco has indeed turned heads, with many expressing excitement over the convenience of adding investment-grade silver and gold to their shopping lists alongside packs of toilet paper and other household items.
The tubes were made available for purchase on December 20 at a member-only price of $549.99 and sold out in minutes. The spot silver price was $24.51 that day, which calculates to a premium of $2.99 per coin. This is significantly lower than the average Silver Eagle premium from specialty bullion dealers lately, which has been on the low end, around $4.25 per coin.
While Costco sells precious metals only to its members, having an Executive Membership offers an automatic 2% cash back on club purchases. This cash-back rebate offsets the cost per ounce by another 50 cents. Using a rewards credit card can offset any premiums further, with many credit card offers available that include an additional 1 to 2%.
Although Costco’s Executive Membership costs $120 a year, more than 32 million people are already enrolled in the program.
The American Silver Eagle coin remains the most popular choice among investors, collectors, and preppers. It is among the world’s most widely recognized silver bullion coins due to its beautiful design, silver purity, and outstanding reputation with the US Mint. The tube packaging makes it convenient for bulk purchases.
Costco’s decision to sell precious metals is seen as a strategy to tap into niche markets and bring more exposure to precious metals as a store of value and wealth to a diverse customer base. The 1 oz gold bars offer a compact and high-value investment, appealing to those looking to diversify their assets.
Costco’s venture into selling American Silver Eagles and gold bars could potentially set a new trend in retail. By blurring the lines between everyday shopping and investment buying, Costco could help many new investors gain a better understanding of investment-grade silver.
While consumers are sending mixed reactions, this move undoubtedly positions Costco as a pioneer in integrating investment options into a traditional retail environment. Whether this will resonate with most of its membership base remains to be seen, but it has certainly sparked a lively conversation among shoppers and investors.
The coins randomly are made available for sale. When available, they are limited to 2 per member and sell out typically within an hour.
References:
- Costco Product Page
- Compare 2024 American Silver Eagle Tube of 20 Coins Prices