Costco is experiencing a gold-buying frenzy as soaring prices for the precious metal drive customers to purchase bullion at an unprecedented rate. A recent survey found that 77% of Costco stores across the U.S. that offered gold bars sold out in the first week of October, reflecting a sharp rise in demand as people turn to gold as a safeguard against inflation and economic uncertainty.
The surge in gold bar sales is part of a broader trend, with many viewing gold as a safe haven in volatile times. Costco has positioned itself as an attractive option for gold buyers by offering bullion at competitive prices, lower than those of traditional dealers, and through its membership perks. Members can earn up to 4% in rewards on gold purchases, adding even more appeal to buying bullion from the big-box retailer.
Sourav Sethia, a frequent Costco shopper from New Jersey, is one of many taking advantage of these offerings. He regularly buys gold bars from Costco and even receives alerts when new stock arrives, allowing him to make purchases at opportune times. Sethia’s experience mirrors the actions of many consumers, who are flocking to Costco as gold prices have risen nearly 30% this year. The store’s ability to offer gold at a discount, while still providing an easy and familiar purchasing experience, has won over a new segment of buyers.
Josh Young, a money manager based in Houston, recently purchased both a gold bar and a coin from Costco, praising the physical nature of gold as a reliable store of value. “It doesn’t generate cash flow, but it’s a good personal diversifier,” he said. This sentiment is shared by many who see gold as a stable asset in uncertain economic times.
Since launching its gold bar sales in 2023, Costco’s foray into the bullion market has attracted significant attention. The company’s chief financial officer, Gary Millerchip, has emphasized the success of these products, noting that the retailer is continuously looking for new ways to bring value to its members.
Though the volumes of gold sold at Costco are relatively small compared to the overall market, experts believe the retailer’s success in attracting new buyers is significant. According to Nicky Shiels, head of metals strategy at MKS PAMP, Costco is drawing in a new group of retail buyers who may not have previously considered investing in gold, which could lead to long-term growth in the market.
Related topics:
Chanel Redefines High Jewellery With A Sporty Twist
