82 Gold sales at Costco have transformed into a lucrative venture, with estimates from Wells Fargo suggesting that the big-box retailer is raking in as much as $100 million to $200 million in revenue monthly. This rapid acceleration in sales comes on the heels of Costco’s introduction of gold bars to its product lineup in late summer 2023. Analysts attribute this surge in sales to Costco’s competitive pricing and strong customer trust, leading to heightened interest and quick sell-outs of the product both online and in stores. Edward Kelly, an equity analyst at Wells Fargo, notes the increasing frequency of Reddit posts and robust monthly e-commerce sales as indicators of the momentum gained since the launch of gold sales. Costco offers 1-ounce gold bars made of nearly pure 24-karat gold, typically priced around 2% above the spot price. With spot prices hovering around $2,357 an ounce, Costco’s price for gold bars is estimated to be slightly over $2,400. The surge in gold sales coincides with a significant rise in gold prices, up more than 13% in 2024. Factors such as inflation concerns and investor apprehension regarding the U.S. fiscal situation, including a projected $2 trillion deficit and a total debt exceeding $34.6 trillion, have fueled demand for gold as a hedge against economic uncertainty. You Might Be Interested In Mastercard Unveils Mobile Virtual Card App for Business Expenses Adjust Your Extra Automatic Mortgage Payments When Rates Rise M&S Shares Shine with a 56% Surge in Pre-tax Profits IMF praises Oman’s financial strategy Abu Dhabi Securities Exchange partners with Tawasal SuperApp Oxyle secures major funding to combat water pollution crisis
