Costco Strikes Gold: Warehouse Giant Selling Millions in Bullion Monthly

Forget giant teddy bears and bulk toilet paper – Costco might be the new gold standard for buying gold. That’s right, according to analysts at Wells Fargo, the warehouse club could be raking in a staggering $100 million to $200 million every month selling gold bars.

This unexpected windfall started in late summer 2023 when Costco began offering one-ounce bars of the precious metal. The move seems to be a hit with members, likely due to a winning combination of two factors: Costco’s famously aggressive pricing strategy and the high level of trust shoppers have in the brand.

While the exact price isn’t advertised online (gotta be a member for that!), estimates suggest Costco’s gold bars go for around 2% above the spot price. That means with gold currently hovering around $2,357 an ounce, you might be looking at a price tag just over $2,400 at Costco.

So what’s driving this gold rush at Costco? A few things could be at play. First, there’s the ongoing battle with inflation. As the cost of living keeps climbing, some folks might be turning to gold as a hedge against its erosive effects. Gold has a long history of being a safe-haven investment, and with the U.S. facing a ballooning deficit, it seems investors are seeking some stability.

Second, there’s the simple convenience factor. Costco’s already a one-stop shop for everything from groceries to electronics. Now, you can apparently add gold bars to your shopping list. Talk about a well-rounded portfolio!

It’s important to note that while sales are strong, analysts aren’t sure how much profit Costco is actually making on this gold bonanza. The low markup and potential for online sales with shipping costs could mean it’s more about attracting customers than generating huge profits.

Regardless, one thing’s for sure: Costco’s foray into gold is certainly turning heads, and it will be interesting to see if this shiny new trend continues to glitter.

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