Costco Ventures Into Selling Gold Bars and Silver Coins

After locking in loyal $1.50 hot dog-soda customers, Costco is on the hunt for a new market in precious metal collectors and investors, according to CNN.

Costco’s finance chief Richard Galanti told CNN that the wholesaler recently began selling silver coins for the first time. Available online, Costco has priced 25-count tubes of 1-ounce Canada Maple Leaf Silver Coins for $675. The coins have a maple leaf on the front and King Charles III on the back. They are non-refundable, and members can purchase up to five.

Costco is aiming to mimic its recent triumph with gold bars by extending its offerings. The retailer brought on $2,000 gold bars for online sale in September, experiencing over $100 million in sales in the last quarter alone.

However, Costco’s decision may be driven more by marketing strategies rather than solely focusing on increased sales, as most consumers do not typically store gold bars in their homes.

Costco’s move to sell precious metals is part of its effort to reinforce its “treasure hunt” brand image. This strategy includes introducing unexpected, limited-time items in its stores to maintain shopper interest and encourage repeat visits.

Back in 2007, Costco’s co-founder Jim Sinegal said, “We try to create an attitude that, if you see it, you ought to buy it because chances are it ain’t going to be there next time.” He added, “That’s the treasure-hunt aspect. We constantly buy that stuff and intentionally run out of it from time to time.”

Costco’s decision to sell precious metals is also driven by their spike in value. Gold prices have recently reached record highs, while silver futures have risen by 21% over the last year.

Investors are marking up the price of precious metals in anticipation of a potential interest rate cut by the Federal Reserve towards the latter part of the year.

Gold and silver are recognized for their resilience as a safer investment. In periods of low interest rates or when rates are anticipated to fall, demand for Treasury bonds decreases, while precious metals, which do not offer interest payments, become considerably more appealing.