Costco is seeing a gold rush. What’s behind the demand for its 1-ounce gold bars?

Costco is experiencing an unexpected surge in demand for its 1-ounce gold bars, a product that you might not typically associate with the members-only warehouse chain. These gold bars have been selling out faster than some of the more common items like discounted laundry detergent. During a recent company earnings call, CFO Richard Galanti revealed that the gold bars, exclusively available online, tend to vanish from the virtual shelves within a few hours of being listed on Costco’s website. Furthermore, there’s a strict limit of two bars per member, which adds to the scarcity. As of the latest update, the gold bars remained out of stock.

Unlike most bargain finds at Costco, gold bars come with a substantial price tag. While no prices were available at the time of writing due to their unavailability, numerous media outlets reported last week that these 1-ounce gold pieces, offered in two designs, were priced just below $2,000 each. This price is slightly higher than the current market rate of gold, which was approximately $1,835 per ounce at that time.

Costco has not disclosed the exact number of gold bars sold recently or the frequency of restocking. The chain, headquartered in Issaquah, Washington, did not respond to requests for comment from The Big Big News.

The ongoing interest in Costco’s gold bars reflects a broader trend of increasing investor demand for precious metals in recent years. Despite the relatively small size of one or two ounces of gold in the context of an investment portfolio, experts emphasize that such interest often arises from a sense of uncertainty. Factors like recent bank failures, inflation concerns, and doubts about the stability of the U.S. dollar can drive individuals to seek alternative ways to protect their wealth.

Jonathan Rose, CEO of the precious metal broker Genesis Gold Group, suggests that gold can be a valuable asset for diversifying and balancing an investment portfolio. It can also serve as a hedge against potential risks in the future. David Wagner III, head of markets and equities at Aptus Capital Advisors, adds that people view gold as a safe haven, a tangible asset they can secure in a safety deposit box or incorporate into retirement plans like an IRA or 401k, especially when they are uncertain about the market’s trajectory.

However, not all experts share this view. Some, like Wagner, argue that gold is not an ideal investment, pointing out that it hasn’t always served as an effective hedge against inflation. He suggests that there are more efficient ways to protect capital, such as derivative-based investments.

It’s important to note that investing in precious metals like gold can be highly volatile. The Commodity Futures Trade Commission has cautioned investors to exercise caution, as prices tend to rise with increased demand, particularly during periods of economic anxiety or instability. It’s advisable for those considering gold investments to educate themselves on safe trading practices and be vigilant against potential scams and counterfeit products in the market.

As of the latest market data, gold for December delivery had fallen to $1,834.80 per ounce. Silver for December delivery was at $21.15 per ounce, and December copper was at $3.59 per pound.

Frequently Asked Questions (FAQs) about Gold Bars Demand

More about Gold Bars Demand

• Costco’s Official Website
• Genesis Gold Group
• Aptus Capital Advisors
• Commodity Futures Trade Commission