Costco Members Rush to Buy Silver Coins Amid Economic Instability

Costco now sells a 25-count of 1-ounce Maple Leaf silver coins to its members. It made headlines last September when he started selling gold bars that quickly sold out. In addition to the silver coins, the large U.S. retailer is reportedly also selling 1-ounce gold bars.

Costco Reportedly Sells 25-Count ‘Tubes’ For About $629 Each

Multiple reports confirm that Costco is currently selling 25-count packages of silver coins to its active members for $629 each. Members are able to buy up to five different packages (or “tubes”) at the same time.

Costco either has a limited supply or keeps selling out of their existing inventory. However, there is an abundance of one-ounce 24-karat gold coins provided by the Royal Canadian Mint that is also available for sale.

Costco CFO Confirms Members Bought ‘Over $100 Million’ Of Gold Bars

Costco CFO Richard Galanti stated that members purchased “over $100 million” worth of precious metals (specifically, gold bars) in the one quarter of 2023. He indicated that the sale on the silver coins was off to a great start as well.

During the same earnings call, Galanti stated that e-commerce “showed strength in several areas.” The sales were led by gold but also “very recently” complemented by silver.

The Extensive History of Silver Usage

Silver has been used as a popular form of currency for centuries. It was first introduced as a form of currency in 700 B.C. according to one report from The Silver Institute. The US Mint-creating federal Coinage Act of 1792 linked the dollar to silver instead of gold.

The United States used to rely on silver as its most favored currency, but that status has waned in recent decades. However, government-issued silver coins still appear to be popular today.

Most Expensive Coin Worldwide Sold For $10 Million

The 1794 Flowing Hair Silver Dollar received the highest auction price ever paid for a single coin in January of 2013. During an event hosted by Stack’s Bowers Auctions in New York City, the coin sold for a little more than $10 million.

This record beats the previous record setter that generated a sale of $7.59 million back in 2022. The coin that reached that particular price point was the 1933 Saint-Gaudens gold double eagle.

Reviews Of Precious Metals Sold By Costco Are Mostly Positive

The instability of the U.S. economy and inflation overall have understandably caused the attention paid to precious metals to skyrocket in recent months. Consumer interest has reportedly increased as a result, according to experts.

Some buyers even believe that owning a tangible asset could serve as a protection against what others view as a volatile environment.

Marketing Head Claims ‘There’s Some Type Of Instability At the Structural Level‘

David Wagner III, the head of equities and markets at Aptus Capital Advisors, opened up to the Associated Press about the increasing interest in precious metals. According to Wagner, the mere concept that someone would buy gold “means they think that there’s some type of instability at the structural level of the market and/or the government itself.”

Wagner made these comments shortly after Costco first started selling gold bars in 2023.

Wagner Claims Gold Is ‘One Of The Worst Things’ You Could Ever Own

Wagner explained in the same article published by the Associated Press that gold did not handle the blow of inflation very well. According to Wagner, gold is “one of the worst things that you can ever own.’

Before joining Aptus, David worked with two capital management firms. He was primarily responsible for conducting analytical research for various microcap and small equity strategies.

Precious Metals Reduce Investing Risk, Diversify Portfolios

Studies have confirmed that by placing gold and other precious metals into an investment portfolio, investors are able to offset the risk and protect their wealth. Gold has usually been able to maintain its reputation of having inverse relationships with other investment types.

A research director from Global X ETFs indicated that the “long-term correlation to other risky assets is lower” than most other assets. This would make it a “desirable portfolio diversifier.”

Gold Prices Jumped By Close To 54% In Late 1970s As S and P Dropped

The gold prices between September 1976 and March 1978 reportedly increased by 54%. However, during the same period, the S and P dropped by nearly 57% during the 2007-2009 recession.

Research Director Rohan Reddy explained that gold has “proven itself time and time again to reduce overall risk.”

Battling The Negative Real Interest Rate Debacle

When real interest rates are either negative or significantly low, investors may experience a period of confusion. The next step to take may not be crystal clear – which is what leads many towards investing in precious metals.

Investors rely on precious metals since they allow you consumers to benefit from the opportunity of cost advantage through interest-bearing assets. In addition, precious metals preserve the purchase power of the average U.S. citizen.

Advancements In Technology Will Need Silver, Other Precious Metals

Renewable energy and the electronics industry are two key primary sectors that rely heavily on advancements to be made over time when it comes to technology. These advantages are designed to increase efficiency and productivity in different aspects of daily life.

The more technology advances, though, the more precious metals will become necessary. For instance, silver plays an integral role in the development of high-tech applications and equipment.

Increased Concerns Over Monetary Policy Effectiveness

The effectiveness of specific monetary policies has also been highlighted by the increasing popularity of precious metals. Consumers and investors alike are concerned about unconventional monetary measures in addition to quantitative easing.

Studies show that these concerns may eventually compel individuals to allocate substantial portions of their wealth into investing in precious metals.

Precious Metals Offer Cultural Significance

Precious metals have always possessed symbolic or cultural significance in different countries throughout the world. For instance, it represents wealth and prestige.

On a deeper level, precious metals can also symbolize permanent and allure. This is yet another reason why precious metals are in such high demand.

Keeping High-Net-Worth Professionals Wealthy For Generations

The preservation of their wealth is a top concern and priority for most high-net-worth professionals. Even when it comes to estate planning for their future generations, most high-net-worth individuals pay close attention to their investments, asset values and overall income.

This includes the intergenerational asset transfer among many other wealth preservation strategies. However, precious metals have helped many to lighten the load and preserve wealth in a different way.