Costco is hoping to win gold again — this time for silver.
The retail giant, which said it sold $100 million worth of gold bars in the most recent quarter, announced on its website that it is now selling tubes of 25 1-ounce silver Canadian Maple Leaf coins for $675 each.
The coin features a maple leaf on the obverse and a portrait of Charles III on the reverse.
Costco members can purchase up to 5 items. All purchases are non-refundable.
The price equates to $27 per coin, a premium compared to the spot price of $24.46 at which silver futures were trading on Friday morning.
The move is the retail chain’s latest attempt to appeal to precious metals collectors who are stocking up on Costco’s $2,000 gold bars online.
In the most recent quarter, Costco sold $100 million worth of gold bars, and the company doubled its precious metal sales. According to CNN.
If you’ve invested in precious metals, you’ve probably made some pretty good gains over the past 12 months.
Gold rose 18% year over year, and silver rose 21%.
Experts attribute the rise in the value of precious metals to the expected rate cuts by the Federal Reserve.
Precious metals do not pay interest unlike other assets such as government bonds, so when interest rates are expected to fall, demand for gold and silver increases.
Gold and silver are also considered safe hedges against inflation, as investors expect precious metals to maintain their value.
Costco’s stock fell 5% in extended trading on Thursday after its quarterly sales fell short of Wall Street expectations as demand for its high-margin products slumped.
With daily expenses weighing on household budgets, customers are severely restraining their spending, especially on big-ticket purchases of non-essential items such as home furniture, sporting goods and garden supplies.
U.S. retail sales in January fell by the most in 10 months, with sales of electronics and appliances, as well as clothing, health and personal care products, falling.
But demand for Costco’s consumables and groceries remained strong, and the company’s comparable sales, which exclude the effects of fuel and currency fluctuations, rose 5.8% in the second quarter.
with post wire
