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Costco has generated an estimated $100M to $200M per month in gold sales.
Costco may be known for exclusive pricing on everything from high-end spirits to food court hot dogs, but an influx of members are going for gold.
The big box retailer, which started selling 1-ounce nearly pure 24-karat gold bars priced at about $2,000 last fall, has seen a growing amount of consumer interest recently amid inflation and economic uncertainty.
“This is a currency that has been around for thousands of years. It is one thing that holds its value and increases its value over a duration of time,” Hitha Herzog, retail analyst and chief research officer at H Squared Research, told ABC News.
A Costco webpage featuring a one-ounce Gold Bar PAMP Suisse Lady Fortuna Veriscan, and a Costco membership card, are shown in this photo, in New York, Oct. 4, 2023.
Richard Drew/AP
In a new equity research note from Wells Fargo, the bank estimated Costco has generated $100 million to $200 million per month in gold bar sales.
“We view the addition of gold/silver as a smart move for Costco, as it only reinforces its value position,” the report stated. “That being said, pricing at that level and shipping costs suggests it’s a very low-profit business at best.”
While the price is not disclosed online to nonmembers, the product typically sells for nearly 2% above the spot price, which as of time of publication was around $2,354 per troy ounce, up more than $350 since 2023.
One-ounce Costco Gold Bar PAMP Suisse Lady Fortuna Veriscan is seen in this image.
Costco
One-ounce Costco Gold Bar PAMP Suisse Lady Fortuna Veriscan is seen in this image.
Costco
Personal finance content creator Humphrey Yang told ABC News he purchased one of the bars at Costco for $2,359.
“I think I’ll hold on to it as long as I can and maybe I can pass it down to a future generation,” he said.
Gold is not a guaranteed investment and has fluctuated before hitting today’s record highs.
One-ounce Costco Gold Bar PAMP Suisse Lady Fortuna Veriscan is seen in this image.
Costco
“The idea of it is that gold holds its worth and that is why people want to have that as a potential investment in their portfolios,” Herzog said.
Costco limits the amount of gold that members can purchase to just 5 ounces per customer.
For those looking to make a short term investment, with plans to sell, there is the possibility of a short term capital gains tax between 10% and 30%.