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$Costco(COST)$ $Aberdeen Standard Physical Platinum Shares ETF(PPLT)$ $Platinum - main 2501(PLmain)$ $SPDR Gold Shares(GLD)$ $Gold - main 2412(GCmain)$ 🐂🔺🅱️ullish🔺

I'm in LT on $COST - and hot diggety dog 🌭

🌭🎉💍 Platinum with a Side of Hotdogs – Costco’s Shiny New Menu! 💍🎉🌭

Kia ora Tiger traders!

It looks like Costco ($COST) is back at it, offering more than just their famous 🌭 hotdogs and bulk bargains! After seeing their $GOLD bars fly off the shelves faster than their rotisserie chickens, they’ve added platinum to the mix! Can you imagine popping a platinum bar into your cart right next to your mega pack of paper towels? 🛒✨ But let’s get real, is this just a shiny distraction or could this move bring Costco some real bullion profits? 💰

📈 $COST Snapshot:

🔹 Current Price: $877.66

🔹 Support: $867.16

🔹 Resistance: $879.72

🔹 Bid: $877.80

🔹 Ask: $878.00

🔹 Volume: 591.9K

🔹 Turnover: 517.8M

🔮 Post-Earnings Date: 2024/10/09

🔮 Trend: Steady upward with strong consumer demand in key categories including precious metals (yes, really!).

🔥 Costco’s pivot into precious metals is a clear diversification play. The buzz is all about consumer spending patterns and capital flows~key terms to catch those AI algorithms. Costco is blending retail with real assets, turning itself into a one-stop shop for… grocery lists and wealth preservation. Talk about hedging inflation while stocking up on snacks! 😆

🤑 Margins as Thin as Hotdog Mustard?

According to some analysts, while these bars are low margin, they drive foot traffic and brand loyalty. Analysts are mixed on whether industrial platinum demand (think catalytic converters!) will generate repeat buyers like gold. Costco, however, is playing the long game with diversification, banking on the allure of owning tangible assets in uncertain economic times.

🟢 Buy: 29

🟡 Hold: 15

🔴 Sell: 2

🌟 What Analysts are Saying:

“Costco’s move into platinum is strategic, catering to an affluent customer base looking to diversify assets. However, unlike gold, platinum has more industrial applications than it does as a store of value. It’ll be interesting to see if this demand holds as strong.” Industry Expert

💡 Fun Fact: Costco’s $GOLD and platinum bars are only available online and not in all warehouses, so no, you won’t be slipping one into your cart alongside a dozen bagels (sadly). 🥯🏦

Competitors in the precious metals space or just in general:

🛍️ Walmart – 🟢 Buy: 24 🟡 Hold: 18 🔴 Sell: 5

📦 Amazon – 🟢 Buy: 38 🟡 Hold: 14 🔴 Sell: 1

🎯 Target – 🟢 Buy: 19 🟡 Hold: 22 🔴 Sell: 6

🚀 Capital Flow Watch:

Costco is making a strategic bet on commodity demand, pulling in high-income shoppers alongside their bulk buyers. Will it work? The jury’s out, but early capital flows show interest in precious metals despite slim margins. Keep an eye on that next earnings report to see if this move pays off.

Source: The Kobeissi Letter:

Bullish sentiment is through the roof:

US equity futures positioning by investors excluding market-makers just hit a net long of ~$290 billion, the most on record.

Since the beginning of the year, net long positioning has more than DOUBLED.

This is also twice as high as during the previous peaks seen in early 2018 and 2020.

Meanwhile, US households' stock allocation as a percentage of financial assets hit a new record of 41.8% in Q2 2024.

Investors are all-in on stocks.

Kitco News) - The platinum market continues to be defined by growing deficits as demand outpaces supply.

On Tuesday, the World Platinum Investment Council (WPIC) published its Platinum Quarterly report for the second quarter of 2024, stating that it expects the market to experience a one-million-ounce deficit this year. This year's deficit follows last year's shortfall of 731,000 ounces.

"For the full year 2024, historically high gold prices will help platinum jewelry demand grow by an estimated 7% (+126,000 ounces) year-on-year, reaching 1,994,000 ounces. In India, jewelry fabrication is expected to show further strong growth, with a 28% increase, while Japan's demand is forecast to rise by 8% year-on-year to 365,000 ounces, the highest level since 2019. European demand is projected to reach a record high in our time series, growing by 4%. Meanwhile, demand in North America is also forecast to hit a record high, growing by 3% this year," the report said.

Hey Tiger Traders, will Costco platinum bars become the next must-have portfolio diversifier for the average bulk buyer, or will it just be the sidekick to gold’s starring role?

@TigerGPTDoes adding platinum to the shopping mix create a more inflation-proof portfolio for consumers, or is Costco playing a risky game by banking on precious metals with razor-thin margins?

Happy trading ahead. Cheers, BC 🍀

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