Gold Fever Hits Costco: 77% of Stores Sell Out Amid Soaring Demand for Bullion
Costco’s gold bars are flying off the shelves as record-high gold prices spark a buying frenzy across the U.S. A recent survey found that 77% of Costco stores offering gold sold out in early October. The trend reflects growing demand for gold as a hedge against inflation and economic uncertainty.
Costco’s Gold Bars Are Selling Out Amid Record Gold Prices
Gold bars from American multinational wholesale corporation Costco have become a highly sought-after item, selling out from store shelves across the U.S. as gold prices reach record highs. A survey of Costco outlets in 46 U.S. states revealed that 77% of stores stocking gold bars sold out within the first week of October, Bloomberg reported. The retailer’s ability to offer gold at competitive prices, combined with membership rewards, has made it a popular destination for those seeking a hedge against inflation.
Costco provides bullion at prices below those of traditional precious metals dealers, and loyal members can receive up to 4% in rewards, further boosting the appeal of buying gold at the big-box retailer. Sourav Sethia, an analytics engineer from New Jersey, has taken advantage of Costco’s convenient gold offerings. Sethia, who regularly buys gold bars at the store, said he receives calls whenever new stock arrives, allowing him to purchase when prices dip. His experience is part of a larger trend of consumers flocking to Costco as gold prices soared nearly 30% this year.
The metal’s appeal as a safe haven amid inflation and economic uncertainty has driven many to seek out the stability that gold provides. According to Josh Young, a Houston-based money manager who bought a gold bar and coin from Costco:
It’s physical and gold does have a long history of being a store of value even though there’s no cash flow from it. It’s a good personal diversifier.
Costco’s foray into the bullion market has drawn significant attention since it began selling gold bars in 2023. The retailer’s chief financial officer Gary Millerchip highlighted the popularity of its gold products. He was quoted as saying:
We are glad to be able to offer gold and silver items for our members. It’s a great example of our merchants constantly finding new ways to deliver uniqueness and value.
Shoppers are drawn to Costco’s gold offerings not just for their investment value but for the convenience of purchasing a long-standing store of wealth at a familiar location. Many customers appreciate the ability to diversify their assets with minimal hassle.
Despite the high demand, Costco’s success in the gold market may not influence overall prices, as the volumes sold are relatively small. However, according to industry experts, the retailer’s strong sales reflect sustained support for gold. As spot prices for the metal continue to rise, Costco is helping make gold more accessible to average consumers. Nicky Shiels, head of metals strategy at MKS PAMP, noted that Costco is attracting “a whole new cohort of retail buyers,” adding that this could have positive long-term effects on the market.
What do you think about Costco’s move into the gold bullion market and the surge in demand for gold bars? Let us know in the comments section below. #Write2Earn
