Costco, seller of gold and silver bullion, wants to move into platinum next

Costco Wholesale (COST) continues to enter the precious metals business. While there are gold bars and silver coins previously With the issue top of mind for shoppers, the retailer is now adding a third precious metal: platinum.

Costco sells the 1 ounce platinum bars for $1,089.99 on its website alongside its popular gold bars and silver coins. The platinum bars are available for Buy online only to loyalty members. They cannot be delivered to Louisiana, Nevada or Puerto Rico.

In April the company found what they were looking for – almost in the truest sense of the word. Costco was reportedly raking in cash at the time 200 million dollars every month through the sale of gold bullion, according to a Wells Fargo research note (WFC).

Costco began selling its gold bars last September for $2,000 each. They began offering 1-ounce silver coins in late January a package of 25 for $675.

The company recently reported strong quarterly profits, largely driven by its benefits E-commerce businessincluding categories such as: home appliances, home furnishings, gift cards and gold and silver.

Costco Chief Financial Officer Gary Millerchip told investors during the company's Sept. 26 earnings call that Costco has helped its customers by maintaining low prices on essential items like chicken, macadamia nuts, Spanish olive oil and double-pack baguettes.

“We want to be the first to lower prices and the last to raise prices,” Millerchip said.

But the commitment to low prices comes as Costco is increasing its membership fee for the first time in seven years. As of September 1st, individual membership is now $65 (was $60), while executive membership is increasing from $120 to $130.

Millerchip said the timing of the membership increase was “very deliberate,” noting that the two-year delay was partly due to the impact of COVID-19 and rising inflation. Costco typically increases its membership fee every five years.