Are Costco's Platinum Bars Worth Buying? Here's What Finance Pros Say

Costco's entry into the precious metals market has sparked interest among investors, with the retailer's platinum bars being the latest addition. As of October 2024, Costco is selling 1-ounce platinum bars for $1,089.99 each. But is this a sound investment? Let's explore what finance professionals have to say.


Costco's platinum bars have a purity of 999.5, making them highly sought after. The retailer's gold bars, which were first introduced in October 2023, generated between $100 and $200 million in monthly sales, according to Wells Fargo analysts. This success has likely contributed to the decision to expand into platinum.


Platinum is a strong, precious metal that's even rarer than gold. Its white-silver color looks like silver, but it's much heavier. While the metal is often used for jewelry, it is resistant to corrosion and doesn't tarnish with heat, so it is widely used to make car parts and laboratory vessels.

The demand for platinum is expected to remain strong, particularly in the automotive industry. Platinum is used to make catalytic converters for cars, and its commercial uses are numerous. However, financial experts often suggest buying precious metals as an ETF rather than an actual bar. This is because holding the physical item means added headaches like finding proper storage and having a harder time when you want to sell.

Jimmy Lee, chief executive officer of the Wealth Consulting Group, an advisory firm, told MarketWatch that "a certain segment wants to own some physical stuff" with today's economic volatility. This sentiment may be driving the interest in Costco's platinum bars.


In conclusion, while Costco's platinum bars may be an attractive investment for those seeking physical precious metals, the added storage and liquidity concerns may make an ETF a more practical choice. However, the strong demand for platinum and the success of Costco's gold bars suggest that the retailer's entry into the platinum market could be a lucrative one. As always, it's essential to do thorough research and consider your personal financial situation before making any investment decisions.