Costco, known for its diverse range of products, including its famous $1.50 hot dog and soda combo, gallon tubs of mayonnaise, and gold bars, has seen a surge in gold and silver sales since October. Retail analysts estimate that Costco is selling up to $200 million worth of gold and silver each month. Online forums and Reddit threads have emerged where customers share tips on how to purchase the bars before they sell out, indicating a growing interest in investing in precious metals through the retailer.
As the price of gold continues to rise, reaching $2,350 per troy ounce, investors are increasingly turning to safe-haven assets like gold in times of economic uncertainty and geopolitical turmoil. Costco’s decision to offer gold bars and silver coins to its members provides a convenient and familiar option for those looking to invest in precious metals for the first time. Despite the potential profitability of this new business venture, analysts suggest that the margins may be low for Costco due to pricing and shipping costs, although it has contributed to the growth of the company’s e-commerce sales.
The Commodity Futures Trade Commission warns potential investors about the volatility of investing in precious metals like gold. The price of gold fluctuates based on demand, making it a risky investment during times of economic instability. Experts recommend that individuals limit their investment in gold to 3 to 5 percent of their assets to mitigate risk. Costco’s foray into selling gold bars and silver coins reflects a growing trend of retail giants offering alternative investment opportunities to their customers, potentially reshaping the traditional retail landscape.
