Costco has built a reputation for offering bulk deals on everyday items, but recently the warehouse retailer has ventured into the world of selling gold bars. The move has proven to be a success, with $100 million worth of gold bars sold in the most recent quarter, according to Business Insider.
The demand for gold has been on the rise globally due to economic uncertainty in recent years. In response to this trend, Costco began selling 1oz (28g) bars of 24-karat gold exclusively online in September, with each Costco member eligible to purchase two bars. With a membership base of over 72 million, the gold bars quickly sold out upon each new release, as reported by Costco CFO Richard Galanti during a September company earnings call.
The exact price of the gold bars is not publicly available, as they are reserved for Costco members. However, some media outlets have reported that the bars cost just under $2,000, slightly below the current market price of gold, which stands at $2,048.30.
While Costco is best known for offering discount prices on everyday items, it also sells a few high-ticket items. In addition to gold bars, the retailer reportedly sold an index card autographed by Babe Ruth for $20,000 in the last economic quarter. Galanti also mentioned that Costco still has an autographed 1951 rookie card from Mickey Mantle available for $250,000. It’s worth noting that both the gold bars and the autographed cards are refundable.
This move by Costco into the gold market reflects a shift in consumer behavior and the economic climate. As people seek to diversify their investments and hedge against economic uncertainty, the demand for gold and other precious metals is likely to continue to grow. Costco’s ability to tap into this market by offering gold bars alongside everyday items is a strategic move that has clearly resonated with its membership base. It also shows that the retailer is capable of adapting to changing consumer demands and market trends.
