Costco Wholesale Corp. has become an unexpected seller of one-ounce bars of gold, which are reportedly selling out within hours of being listed on their website. The company’s Chief Financial Officer, Richard Galanti, confirmed the high demand for these gold bars, stating that they typically disappear from the site shortly after being loaded, with a limit of two bars per member. However, Costco has not provided further details regarding the types of gold bars sold or the factors driving this demand.
Gold is commonly viewed as a safe-haven investment and a hedge against inflation. Factors such as central bank purchases, concerns about economic slowdown, and jewelry purchases have contributed to the support of gold prices. Yet, the impact of higher interest rates has acted as a counterforce, leading analysts to speculate about potential volatility in gold prices.
Despite these uncertainties, Costco reported quarterly results that surpassed expectations. Analysts believe that the retail chain continues to attract customers seeking affordability amidst rising prices. The company’s shares have notably increased by 23.8% this year, outperforming the S&P 500 Index, which has risen by 11.4% over the same period.