Costo’s Diverse Precious Metals Offering
By now, most folks have heard that Costco sells a lot of gold. While the coverage has focused largely on gold bars from Swiss and South African refineries, the wholesale club’s precious metals offering is much bigger.
Costco.com’s listings can be challenging to navigate due to the speed at which items sell out and the site’s peculiarities. To view prices for in-stock, members-only items, members must log in.
Tracking Alternative Gold and Silver Products
Collectors have found a workaround by tracking a dozen or so other gold and silver products on a relatively new subreddit dedicated to Costco, where they share tips about local warehouses with supply and bookmark online links.
Based on spot prices and past comments, Costco’s gold and silver items range from a few hundred dollars for a tube of silver coins to over $7,500 for 100-gram bars of 24-karat gold. This range of price points caters to both experienced and novice investors.
Low Markup on Gold Bars
Costco tends to sell gold bars at a minimal markup from the market’s spot price. However, coins from the US Mint and Canadian Mint carry a slightly higher premium due to their popularity with collectors.
For example, as of Thursday, one-ounce gold American Eagle and American Buffalo coins were priced at $2,399 each, slightly above the gold spot price of $2,300. Additionally, a 20-pack of one-ounce silver US Eagle coins was available for $689, and a set of 25 one-ounce silver coins from the Canadian Mint was priced at $809, compared to a silver spot price of $29 per ounce.
Benefits for Costco
While Costco may not make significant profits from its gold business, the company likely continues the offering for several reasons. Pulling in hundreds of millions of dollars in sales through Costco.com contributes to strong e-commerce revenue growth relatively easily.
Furthermore, the exclusivity of these items serves as another way to maintain existing members’ satisfaction and attract new sign-ups to the Costco membership program.
Additional Insight:
It’s interesting to note how Costco’s strategy of offering a diverse range of gold and silver products not only caters to investors at different experience levels but also serves as a strategic move to boost e-commerce revenue and enhance member loyalty.