- The silver coins are the latest bullion to be offered exclusively to Costco members since the company began selling bullion in September 2023
- Made by the Royal Canadian Mint, they come in packs of 25 and feature an image of a maple leaf on the obverse and the likeness of King Charles III on the reverse
- The coins have a face value of $5 Canadian dollars, but customers are only allowed to buy five packs of coins for $679, even though they are worth $625
Just months after Costco began selling $2,000 gold bars, the company is expanding its inventory when it comes to precious metals, now selling $679 packs of silver coins.
Struck by the Royal Canadian Mint, the coins have a face value of $5 Canadian dollars and come in a pack of 25. They are currently sold at Costco Canada stores and online.
Each weighs one troy ounce and is composed of 99.99% pure silver, with an image of King Charles III on one side and a maple leaf on the other.
The retailer only allows customers to buy five packs of coins per person.
But with the company selling the packs for $679 and customers only receiving $625 in currency, that means Costco makes a $54 clear profit on each sale.
Costco is now selling $679 packs of silver coins after their gold bars flew off the shelves
The silver coins are the latest precious metals offered exclusively to Costco members
The coins from the Royal Canadian Mint come in packs of 25 and feature an image of a maple leaf on the obverse and likeness of King Charles III on the reverse
Also, the price of silver has risen nearly 5 percent in the past six months to $24.50 an ounce.
At market prices, this would make a pack of $625 silver coins from Costo worth even less at $612.50 by weight.
The price of $679 for each package is therefore not a great investment unless the price of silver continues to rise in the coming months.
Buyers should also be aware that the coins cannot be returned or refunded once purchased.
On Thursday, during the company’s earnings call, Costco CFO Richard Galanti told analysts that growth in e-commerce sales in the quarter ended Feb. 18 was ‘led by sales of gold and, more recently, silver.’
The Royal Canadian Mint says the silver coins have “enhanced” security features, including anti-counterfeiting technology and protection to reduce the likelihood of them developing white discoloration spots.
Last September, Costco made headlines for selling 24-karat gold bars for about $2,000 each. Their stores sold out within a few hours of receiving stock.
By the end of November, customers had collectively spent $100 million on bullion, and the rise in gold prices to a record high last week only shows the demand for precious metals.
The price of gold hit record highs last week at $2187 an ounce, driven by growing hopes of the Federal Reserve’s first rate cut in June. The price of gold has grown by more than 12 percent since September.
‘Silver has underperformed gold quite a bit. So there is a lot of catching up to do and I think the move could be quite dramatic, says metals strategist Joni Teves. CNBC.
Gold and silver are considered to be one of the most robust investments.
The price of silver has risen nearly 5 percent in the past six months to $24.50 an ounce
The price of gold hit a record high last week at $2,187 an ounce, driven by growing hopes of the Federal Reserve’s first rate cut in June
Costco has rolled out two gold bars on its online site, one from PAMP Suisse (left) for $1979, and another from Rand Refinery for $1949
On Thursday, during the company’s earnings call, Costco Chief Financial Officer Richard Galanti told analysts that growth in e-commerce sales in the quarter ended Feb. 18 was ‘led by sales of gold and, more recently, silver.’
When interest rates fall, holding income-paying assets such as bonds is less attractive than owning the precious metals.
When interest rates are low or expected to fall, demand for government bonds decreases and precious metals become slightly more attractive.
