Gold Rush at Costco: How Soaring Prices Are Driving Bullion Sales to New Heights
Gold Rush at Costco: How Soaring Prices Are Driving Bullion Sales to New Heights
Embedded Files
Gold prices have soared to record highs this year, but that hasn't stopped Costco Wholesale Corp. from selling out of gold bars across its U.S. stores.
Gold prices have soared to record highs this year, but that hasn't stopped Costco Wholesale Corp. from selling out of gold bars across its U.S. stores.
Costco has made gold buying accessible to the masses by offering competitive prices and extra rewards for loyal customers. This, combined with gold's appeal as a safe haven and inflation hedge, has driven strong demand.
Costco has made gold buying accessible to the masses by offering competitive prices and extra rewards for loyal customers. This, combined with gold's appeal as a safe haven and inflation hedge, has driven strong demand.
While Costco doesn't disclose detailed sales figures, a Bloomberg survey found that 77% of Costco stores stocking gold bars were sold out in the first week of October. This survey included calls to 101 stores in 46 states, all of which had recently received new stock.
While Costco doesn't disclose detailed sales figures, a Bloomberg survey found that 77% of Costco stores stocking gold bars were sold out in the first week of October. This survey included calls to 101 stores in 46 states, all of which had recently received new stock.
Gold's Impressive Performance
Spot gold has surged nearly 30% this year, repeatedly hitting record highs. This makes gold one of the best-performing commodities, outpacing U.S. equities and bonds. The rally is driven by gold's role as a safe haven during geopolitical and economic uncertainty and its use as a wealth diversifier. Last month, gold prices surpassed $2,600 an ounce, boosted by the Federal Reserve's interest rate cuts. Gold, which doesn't yield interest, tends to rise in a low-rate environment.
Broader Market Trends
Costco's gold sales come at a time when many Americans are selling gold to capitalize on high prices. New York pawn shops and jewelers report a surge in sellers. Sales of American Eagle gold coins, a proxy for retail buying, dropped 64% from January to September compared to the previous year, according to U.S. Mint data.
Costco's gold sales come at a time when many Americans are selling gold to capitalize on high prices. New York pawn shops and jewelers report a surge in sellers. Sales of American Eagle gold coins, a proxy for retail buying, dropped 64% from January to September compared to the previous year, according to U.S. Mint data.
Costco began selling gold bars in June 2023 in its U.S. stores and online. The Swiss-made 24-karat bars are small, about the size of mini chocolate bars, and come in cardboard-and-plastic packaging. Despite not disclosing exact sales figures, the buzz among shoppers indicates high popularity.
Costco began selling gold bars in June 2023 in its U.S. stores and online. The Swiss-made 24-karat bars are small, about the size of mini chocolate bars, and come in cardboard-and-plastic packaging. Despite not disclosing exact sales figures, the buzz among shoppers indicates high popularity.
During a September 2023 earnings call, Costco executives highlighted the popularity of their gold offerings. In the fiscal first quarter, the company sold over $100 million in gold bars, equivalent to about 51,740 ounces based on average gold prices at the time.
During a September 2023 earnings call, Costco executives highlighted the popularity of their gold offerings. In the fiscal first quarter, the company sold over $100 million in gold bars, equivalent to about 51,740 ounces based on average gold prices at the time.
"We are glad to offer gold and silver items for our members... It's a great example of our merchants finding new ways to deliver uniqueness and value.
- Gary Millerchip, Costco CFO
Thinking About Investing in Precious Metals?
Thinking About Investing in Precious Metals?
Watch this video first.
Learn More With Our Free Gold IRA Guide
Learn More With Our Free Gold IRA Guide
Page updated
Google Sites
Report abuse