Costco, renowned for offering bulk packages of everyday essentials like toilet paper and coffee, has expanded into a new market that is considered crucial by investors and survivalists: gold.
In a recent announcement, the discount retailer revealed that it now sells 1-ounce bars of gold. However, due to overwhelming demand, the bars are consistently out of stock despite a two-bar limit per member. Costco offers two types of bars: the 1-ounce PAMP Suisse Lady Fortuna Veriscan bar, adorned with a depiction of the goddess of fortune, and a 1-ounce bar from South Africa’s Rand Refinery, featuring an elephant design.
Both gold bars are approximately half an inch long. The PAMP Suisse bar is registered and comes with a digital certificate accessible via a QR code, while the Rand bars have their own unique serial numbers.
Gone in hours
As of Thursday morning, Costco’s e-commerce site listed the bars as unavailable, so the current price is not listed. However, the PAMP bar is typically sold for around $1,980, while the Rand bar is priced at approximately $1,950, according to Yahoo Finance.
“I’ve received several calls regarding our online sale of one-ounce gold bars,” mentioned Richard Galanti, Costco’s Chief Financial Officer, during an investor call. “Yes, we do sell them, but they generally sell out within a few hours of being loaded onto the site. We limit the purchase to two bars per member.”
Gold has always been seen as a hedge against inflation and a source of financial stability during volatile periods in the stock and bond markets. In the last five years, gold prices have risen by 57%, compared to a 47% increase in the broader S&P 500 stock index during the same period.
Costco’s gold bars are priced just above the current spot price of gold, which stood at $1,875 per ounce on Thursday, according to the financial data firm FactSet.
Costco customers have shown great interest in this product, with some noting that the prices are lower compared to other retailers. Certain reviewers have also highlighted the benefits of Costco credit card and executive memberships, which offer a combined 4% cash back on gold purchases.
“I was pleasantly surprised to find out that Costco sells physical gold. I hope to learn when it becomes available again, as it sold out very quickly!” wrote one satisfied buyer in a 5-star review. “Costco’s solid reputation made it a secure and easy purchase. To be honest, I’m not sure I would trust just any dealer.”
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