Costco Sells Out $7,600 Gold Bars in Record Time

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Costco recently sold out of 100-gram bars of 24-karat gold from PAMP Suisse, priced at $7,599.99 each, in less than a day. The bars, weighing as much as three and a half standard coins, were in high demand despite their high cost, akin to that of a high-mileage used car.

Demand for these gold bars was strong, evident from the quick sell-out, although the exact number of units sold wasn’t disclosed. The product received numerous positive reviews from verified customers.

Costco’s sales strategy includes an attractive rewards system where Executive members earn 2% rewards, plus an additional 2% from Costco’s credit card on purchases. This incentive was particularly appealing for buyers making such significant purchases, offering substantial savings.

While Costco likely operates on thin profit margins by pricing precious metals close to market spot rates, the company benefits from increased member engagement, robust online sales, and higher credit card usage.

Costco’s business philosophy prioritizes top-line growth over maximizing immediate profits, evident from the swift sale of high-value items like these gold bars. This success underscores Costco’s ability to attract and retain members through unique offerings and favorable membership benefits.

This event highlights ongoing consumer interest in alternative investments like gold, despite economic uncertainties, and underscores Costco’s position in leveraging consumer demand effectively.