Costco turns to selling silver coins after $100 MILLION of gold bars flew off shelves - so is it worth the investment?

Just months after Costco began selling $2,000 gold bars, the company is expanding its stock when it comes to precious metals and is now selling $679 packs of silver coins.

The coins, minted by the Royal Canadian Mint, have a face value of $5 Canadian Dollars and come in a pack of 25. They are currently being sold in Costco Canada  stores and online. 

Each weighs one troy ounce and is composed from 99.99% pure silver, with an  image of King Charles III on one side and a maple leaf on the other.

The retailer is only allowing customers to purchase five packs of the coins per person. 

But with the company selling the packs for $679, and customers receiving only $625 worth of currency, it means Costco is making $54 clear profit with each sale. 

Costco is now selling $679 packs of silver coins after its gold bars flew off shelves

The silver coins are the latest precious metals offered exclusively to Costco members

The coins by the Royal Canadian Mint come in packs of 25 and feature an image of a maple leaf on the front and the likeness of King Charles III on the reverse

Furthermore, the cost of silver has risen almost 5 percent in the last six months to $24.50 per ounce. 

At market rates, this would make a pack of $625 silver coins from Costo worth even less at $612.50 by weight. 

The cost of $679 for each pack is therefore not a great investment unless the price of silver continues to increase in the coming months.

Buyers should also beware the coins cannot be returned or refunded once purchased.

On Thursday Costco Chief Financial Officer Richard Galanti, during the company's earnings call, told analysts that growth in e-commerce sales during the quarter ending February 18, was 'led by sales of gold and very recently silver.' 

The Royal Canadian Mint says the silver coins feature '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 priced at around $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 the gold bars and the surge in gold prices to an all-time high last week only demonstrates the  demand for precious metals.

 The price of gold reached record highs last week to $2187 per ounce, driven by mounting hopes of the Federal Reserve's first interest rate cut in June. The price of gold has grown by more than 12 percent since September.

'Silver has been underperforming gold quite a lot. So there is a lot of catching up to do and I think the move could be quite dramatic,' metals strategist Joni Teves told CNBC.

Gold and silver are considered to be one of the most resilient investments. 

The cost of silver has risen almost 5 percent in the last six months to $24.50 per ounce

The cost of gold reached record highs last week to $2187 per ounce, driven by mounting hopes of the Federal Reserve's first interest 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 Costco chief financial officer Richard Galanti, during the company's earnings call, told analysts that growth in e-commerce sales during the quarter ending February 18, was 'led by sales of gold and very recently silver.' 

When interest rates fall, holding income-paying assets such as bonds is less appealing than owning the precious metals. 

When interest rates are low or expected to fall, demand for Treasury bonds ebbs, and precious metals become slightly more attractive.