Costco began offering 1 oz gold bars from PAMP Suisse and Rand Refinery to members via flash sales on their website in 2023. The addition of American Silver Eagles to the Costco product line has sparked reactions from surprised shoppers and investors.
Since, various reports have emerged online that the retailer has increased its precious metals offerings 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.
Costco Silver Eagles
The introduction of American Silver Eagles at Costco has indeed turned heads, with many expressing excitement over the convenience of adding investment-grade precious metals to their shopping list, alongside packs of toilet paper and other household items.
The tubes were first made available 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 annually, 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.
Expanding Investor Market
Costco’s strategy to sell precious metals taps into niche markets and exposes their customer base to silver as a store of value and wealth. As a compact and high-value investment, 1 oz gold bars are appealing to those looking for asset diversity.
Costco’s venture into selling American Silver Eagles and gold bars could set a new trend in retail. By blurring the lines between everyday shopping and investment buying, Costco could help many new investors better understand 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 sparked a lively conversation among shoppers and investors.
The coins are randomly offered for sale, though their availability is becoming more frequent. When available, they are limited to 2 per member and sell out typically within an hour.
References:
- Costco Product Page
- Compare American Silver Eagle Tube of 20 Coins Prices
