Grocery retailer Costco Wholesale (COST) has announced that it will sell Swiss-made platinum bars, adding the precious metal to a line-up that already includes silver coins and gold.
The warehouse club said that it will now sell one-ounce platinum bars at a cost of $1,089.99 each through its website. The bars are only available online and consumers will need a valid Costco membership to purchase them.
Following a price hike on Sept. 1, the company charges $65 for a basic membership and $130 for a higher tier executive membership. The move to sell platinum bars comes as the price of the precious metal has risen more than 15% over the last 12 months. Platinum’s price peaked right around $1,100 per ounce earlier this year.
Flying of the Shelves at Costco
Platinum is primarily used to make jewelry, though it has industrial applications that include making glass and helping to refine petroleum. Costco is selling platinum bars following the success the company has had with silver coins and, in particular, gold bars.
Costco began selling gold bars in August 2023, and they immediately became a bestseller. Analysts at Wells Fargo (WFC) bank reported in April of this year that Costco was selling $200 million worth of gold bars each month. The company reported that its gold bars were selling out within hours of being restocked.
The price of gold has increased more than 40% over the past 12 months and is currently trading at $2,675.10 an ounce, near an all-time high. COST stock has risen 60% in the last 12 months.
Is COST Stock a Buy?
Costco stock has a consensus Moderate Buy rating among 24 Wall Street analysts. That rating is based on 16 Buy and eight Hold recommendations made in the last three months. There are no Sell ratings on the stock. The average COST price target of $937.57 implies 6.73% upside potential from current levels.
