Why is Costco selling gold bars and silver coins? How much do they cost?
Costco has begun selling silver coins following the success of their gold bar sales late last year. Why is the retailer selling precious metals?
Costco is known for certain features that set it apart from other retailers. It’s famous for selling products by bulk, its low prices, and its membership-based business model.
The store is also famous for providing what it calls a “treasure hunt” experience. This means customers can come upon unexpected products and offers while browsing the aisles.
This element of surprise adds excitement to the shopping experience and encourages impulse purchases.
Now the store’s treasure hunt experience has become a little more literal. Costco began marketing to precious metal investors and collectors in September by selling gold bars online.
READ ALSO: Unemployment rises above the level seen one year ago
How much are the gold bars and silver coins Costco is selling?
The retailer, indeed, struck gold with this campaign. It sold the bars for $2,000 each and registered sales of $100 million for the metal last quarter, the 24-karat gold bars leading growth in its e-commerce sector.
They’ve expanded to silver, and the store is now selling 25-count, one-ounce tubes of Canada Maple Leaf silver coins online for $625. Each coin is composed of 99.99% pure silver.
The coins bear the profile of King Charles III on one side, and a maple leaf on the other. They were issued by the Royal Canadian Mint, and the coin face indicates that they are worth five Canadian dollars each.
READ ALSO: Charge for late payments on credit cards capped at $8
Why is Costco selling gold bars and silver coins?
Costco has been successful with their sales of precious metals, but aside from the added profit, the store is also strengthening its “treasure hunt” brand with the offering.
The company has been promoting a way of thinking where, if you see an item that catches your fancy in the membership club, you must snap it up because it might not be there when you come back.
Costco’s move to sell the metals comes as gold prices reach record levels this week, while silver prices are predicted to rise even higher in 2024.