Costco, the popular warehouse retailer, has introduced a new item to its inventory – gold bars. Since October, Costco has been selling one-ounce, 24-karat gold bars to its members. These bars have quickly become a hot commodity, with online forums and Reddit threads popping up to discuss strategies for purchasing them before they sell out. Retail analysts estimate that Costco is now selling up to $200 million worth of gold and silver each month, showcasing the increasing interest in precious metals among consumers.
Gold prices have soared to record levels, reaching $2,350 per troy ounce, amid economic uncertainty and geopolitical concerns. Investors are turning to gold as a safe haven asset in times of turmoil, despite improvements in the U.S. economic outlook. Costco’s move to sell gold bars has proven successful, with the company selling over $100 million worth of gold during its first quarter. While the profit margins may be low due to pricing and shipping costs, the venture has contributed to an increase in e-commerce sales for Costco, showing the potential of this new business for the retailer.
The Commodity Futures Trade Commission has cautioned investors about the volatility of investing in precious metals like gold. While the demand for gold typically rises during times of economic instability, it is not a guaranteed investment. Experts recommend that individuals allocate a small portion of their assets, around 3 to 5 percent, to gold as part of a diversified investment strategy. As Costco continues to see success in selling gold bars, it underscores the growing appeal of precious metals as a tangible asset in uncertain times.
