Costco's 'Treasure Hunt' Expands: Retailer Adds Silver to its Mix
Gold and silver sells out quickly
Costco, the warehouse retailer known for its budget-friendly deals and $1.50 hot dog-soda combos, is venturing into a surprising new market: precious metals. The company now offers gold bars and silver coins, targeting investors and collectors alongside its loyal customer base.
This move builds upon Costco's "treasure hunt" strategy, where the retailer frequently introduces unexpected, limited-time items.
Costco's founder once 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.
Costco recently began selling 20-count tubes of 1 oz. American Silver Eagle Coins online for $550. It also offers gold bars, which proved immensely popular in September, with over $100 million sold last quarter.
Precious Metals as Investments
Costco's entry into the precious metals market coincides with rising prices. Gold has reached record highs, and silver futures are up 21% in the past year. Investors are increasingly favoring precious metals as they anticipate the Federal Reserve cutting interest rates later this year starting in June.
Gold and silver are often seen as resilient investments, more attractive when interest rates fall and income-generating assets like bonds become less appealing. Some investors consider them a hedge against inflation, believing they will hold their value better than currencies during periods of economic uncertainty.
Costco's Success
While not everyone is buying gold bars for home storage, Costco's 'treasure hunt' strategy appears to be working in this niche market. Gold and silver sell out so quickly that members wanting to pick up some inventory for themselves are finding it increasingly difficult to catch in-stock items, more often than not greeted with “Product Not Available!“
We have a solution that might help – free stock alerts are available in the Costco Daily section of The Pipeline. Simply subscribe to The Pipeline and you’ll automatically be signed up for Costco Daily alerts.