EXHIBIT 5.1

March 2, 2005

PriceSmart, Inc.

9740 Scranton Road

San Diego, CA 92121-1745

Re: PriceSmart, Inc. Registration Statement on Form S-1 – 1,158,813 Shares of Common Stock, Par Value $0.0001 Per Share

Ladies and Gentlemen:

We have acted as counsel to PriceSmart, Inc., a Delaware corporation (the “Company”), in connection with the proposed issuance of 1,158,813 shares of common stock, par value $0.0001 per share (the “Shares”), pursuant to a registration statement on Form S-1 under the Securities Act of 1933, as amended (the “Act”), filed with the Securities and Exchange Commission (the “Commission”) on March 2, 2005 (the “Registration Statement”). Of the 1,158,813 shares being registered, 200,000 shares (the “Warrant Shares”) are issuable upon exercise of a Common Stock Purchase Warrant, dated as of January 26, 2005 (the “Warrant”). The remaining Shares were previously issued (the “Issued Shares”). This opinion is being furnished in accordance with the requirements of Item 601(b)(5) of Regulation S-K under the Act, and no opinion is expressed herein as to any matter pertaining to the contents of the Registration Statement or Prospectus, other than as to the validity of the Shares.

As such counsel, we have examined such matters of fact and questions of law as we have considered appropriate for purposes of this letter. With your consent, we have relied upon the foregoing and upon certificates and other assurances of officers of the Company and others as to factual matters without having independently verified such factual matters.

We are opining herein only as to General Corporation Law of the State of Delaware, and we express no opinion with respect to the applicability thereto, or the effect thereon, of any other laws.

Subject to the foregoing, it is our opinion that, as of the date hereof, the Shares have been duly authorized by all necessary corporate action of the Company, the Issued Shares are validly issued, fully paid and nonassessable, and upon exercise of the Warrant in accordance with its terms, the Warrant Shares, when issued, will be validly issued, fully paid and nonassessable.

This opinion is for your benefit in connection with the Registration Statement and may be relied upon by you and by persons entitled to rely upon it pursuant to the applicable provisions of federal securities laws. We consent to your filing this opinion as an exhibit to the Registration Statement and to the reference to our firm in the Prospectus under the heading “Legal Matters.” In giving such consent, we do not thereby

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admit that we are in the category of persons whose consent is required under Section 7 of the Act or the rules and regulations of the Commission thereunder.

Very truly yours,

/s/    LATHAM & WATKINS LLP