Current:Home > ContactCostco now sells up to $200 million a month in gold and silver -SummitInvest
Costco now sells up to $200 million a month in gold and silver
View
Date:2025-04-11 15:45:11
Shoppers are heading to Costco for more than just budget-friendly hot dogs.
The warehouse club has seen a spike in sales ever since it began selling 1-ounce bars of 24-karat gold last September. With the gold bullion selling out faster than the store could replenish its stock, the discount giant in January added silver coins to its offerings of precious metals.
According to a recent estimate from Wells Fargo, the members-only retailer now sells $100 million to $200 million worth of gold and silver a month. The burgeoning business comes as the price of gold is reaching new heights.
Sales have climbed partly because of "Costco's aggressive pricing and high level of customer trust," Edward Kelly, a Wells Fargo equity analyst, said in a research note. "The accelerating frequency of Reddit posts, quick online sell-outs of product, and Costco's robust monthly eCommerce sales suggests a sharp uptick in momentum since the launch."
Costco didn't immediately reply to a request for comment on Wednesday.
Online buzz explains part of why Costco's gold is flying out the door. But the shiny metal is also a traditional hedge against inflation, which remains stubbornly persistent, as well as stock market volatility.
Adding to its current allure, gold prices have risen over the past year, hitting several milestones in the last few weeks alone — climbing from a then record high of $2,160 per ounce in early March to today's price of $2,353.15. The value of gold has grown 14.5% since January — higher than any of the major indices on the New York Stock Exchange. Gold prices are likely to stay flat over the next couple of months, experts predict.
Costco sells two types of gold bars: a 1-ounce PAMP Suisse Lady Fortuna Veriscan bar, which bears the imprint of a silhouette of the goddess of fortune with a cornucopia, and a 1-ounce bar from South Africa's Rand Refinery, stamped with an elephant design. It also sells 1-ounce Maple Leaf silver coins at $650 for a 25-coin pack.
Gold bars at Costco are selling for about 2% above spot price, according to Wells Fargo. That means while Costco is happy to offer the metals to consumers, it's not generating by way of earnings.
"Pricing at that level and shipping costs suggests it's a very low-profit business at best," Kelly wrote.
- In:
- Costco
Khristopher J. Brooks is a reporter for CBS MoneyWatch. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union. His reporting primarily focuses on the U.S. housing market, the business of sports and bankruptcy.
TwitterveryGood! (26)
Related
- Man can't find second winning lottery ticket, sues over $394 million jackpot, lawsuit says
- Howie Mandel’s Masked Singer Exit Interview Will Genuinely Make You Laugh
- What's making us happy: A guide to your weekend listening and viewing
- Paris Hilton Reveals Name of Her and Carter Reum's Baby Boy
- At site of suspected mass killings, Syrians recall horrors, hope for answers
- Isla Bryson, trans woman who transitioned while awaiting trial for rapes, sentenced to prison in Scotland
- Transcript: Former Secretary of State Condoleezza Rice on Face the Nation, Feb. 26, 2023
- What happened 'The Night of the 12th'? A murder remains a mystery in this French film
- South Korean president's party divided over defiant martial law speech
- How Sex/Life's Sarah Shahi and Adam Demos Fell in Love in Front of the Camera
Ranking
- Biden administration makes final diplomatic push for stability across a turbulent Mideast
- FBI chief says agency feels COVID pandemic likely started with Chinese lab leak
- 3 works in translation tell science-driven tales
- This duo rehearsed between air raid alarms. Now they're repping Ukraine at Eurovision
- US appeals court rejects Nasdaq’s diversity rules for company boards
- Trouble In Hollywood As Writers Continue To Strike For A Better Contract
- Tom Hanks has starred in dozens of movies. Now he's written a novel, too
- Glossier Just Launched at Sephora With Free Same-Day Delivery— Here's What We're Buying
Recommendation
'Kraven the Hunter' spoilers! Let's dig into that twisty ending, supervillain reveal
Jerry Springer, talk show host and former Cincinnati mayor, dies at 79
Judy Blume has never been afraid to speak her mind
Nearly all companies who tried a 4-day workweek want to keep it
Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
In 'Book Club: The Next Chapter,' the ladies live, laugh, and love in Italy
Death toll rises after migrant boat smashed to pieces off Italy's coast, stoking debate over EU migrant crisis
Why Dierks Bentley Feels Like He Struck Gold With His Family and Career