In a move blending bulk shopping with precious metals, in recent months Costco began offering 1 oz gold bars from PAMP Suisse and Rand Refinery that members could buy via flash sales on the company’s website. This surprising addition to Costco’s diverse product line has sparked a variety of reactions from shoppers and investors alike.
Earlier this week, various reports began to emerge 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 were able to 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 of 20 coins that were from the current 2023 mintage year.
The introduction of precious metals at Costco has certainly 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 available made available for purchase on December 20 with a member’s 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 significant 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 their 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, there are already more than 32 million people enrolled in the program.
The American Silver Eagle coin remains the most popular choice among investors, collectors and preppers. It is one of the most widely recognized silver bullion coins in the world due to its beautiful design, silver purity and outstanding reputation of the US Mint. The tube packaging makes it convenient for bulk purchases.
Costco’s decision to sell precious metals has been seen as a strategy to tap into niche markets and bring more exposure of precious metals as store of value and wealth to a diverse customer base. While 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, blurring the lines between everyday shopping and investment buying providing a way for many new investors to gain a better understanding of investment-grade silver.
While reactions are mixed, this move undoubtedly positions Costco as a pioneer in integrating investment options into a traditional retail environment. Whether this will resonate with the majority of its membership base remains to be seen, but for now, it has certainly sparked a lively conversation among shoppers and investors.
The coins are made available for sale online at random. When they are available, they are limited to 2 per member and they sell out typically within an hour.
References:
- Costco Product Page
- Compare 2024 American Silver Eagle Tube of 20 Coins Prices
