Costco, the popular wholesale retailer known for bulk groceries and unbeatable deals, has become an unlikely hotspot for gold investors. Since the introduction of its 24-karat gold bars, the item has gone viral — with eager shoppers clearing out shelves within hours of restocking.
The Gold Bar Craze Explained
First launched in 2023, Costco’s gold bars are one-ounce, pure gold bullion, offered in two popular options — the PAMP Suisse Lady Fortuna Veriscan and South Africa’s Rand Refinery bar. Despite each bar being priced around $1,950 to $1,980, their demand skyrocketed, leading to widespread sellouts.
A Bloomberg survey found that 77% of Costco stores in 46 states reported sellouts within just the first week of October 2024. The trend highlights a growing interest in alternative investments, particularly during times of economic uncertainty.
Why Are People Buying Gold from Costco?
Costco’s reputation for quality and reliable customer service has made it a trusted name, even in the precious metals market. Shoppers view these gold bars as a tangible, secure form of investment, especially when traditional markets feel shaky.
Adding to the appeal is the limited availability. The bars are sold online to members only and typically disappear within hours of restocking. The buying frenzy has been so intense that Costco has imposed purchase limits to keep up with demand and maintain fair access.
Purchase Limits Now in Place
To control the rush and ensure that more customers get a chance to buy, Costco has limited purchases to two gold bars per transaction every 24 hours. This policy aims to balance customer interest while keeping inventory under control.
Estimated Sales and Expanding Offerings
Wells Fargo analysts estimate that Costco is making $100 million to $200 million in gold sales per month. The strong demand has even led Costco to expand its precious metals offerings. Alongside gold, the company now sells silver coins and 1-ounce platinum bars as part of its growing investment product line.
Experts Advise Caution
While gold is often seen as a safe haven during economic downturns, financial experts warn that it’s not without risk. The Commodity Futures Trading Commission (CFTC) has reminded investors that precious metals can be volatile, and buyers should do their homework before investing.
Gold prices can rise and fall sharply, depending on global markets, interest rates, and inflation. So, while Costco’s gold bars are real and popular, investing in them should be a careful financial decision, not just a trend-driven impulse.
Costco’s venture into the gold market has taken the investment world by storm. With limited purchase options, high demand, and strong monthly sales, the wholesale giant has tapped into a market many never expected to see in their local warehouse club. As Costco expands into silver and platinum, it’s clear that the retailer is not just meeting demand — it’s shaping a new space in consumer investing.
Just remember, gold may glitter, but it comes with risks. Always research before turning your shopping cart into an investment portfolio.