The popular wholesale retailer has seen an increase in demand for the trendy item.
Costco has entered the precious metals market with pure, one-ounce gold bars.
The warehouse giant’s 24-karat gold bars have caused a sensation, selling out within hours of restocking.
Its newfound popularity has prompted the company to impose purchase limitations.
These limits are intended to manage the overwhelming demand that resulted from the item’s viral success.
Costco’s gold bars were first introduced in 2023 and ranged in price from $1,950 to $1,980.
The bars offer options such as the PAMP Suisse Lady Fortuna Veriscan and South Africa’s Rand Refinery.
Despite the high price, these bars are flying off the shelves.
According to a Bloomberg survey, approximately 77% of Costco stores in 46 states experienced sellouts in the first week of October 2024.
Costco imposed a purchase limit in response to the excessive buying.
This limits members to two gold bars per transaction within a 24-hour period.
The limit is set to ensure wider access for members while maintaining inventory moderation.
A climate of economic uncertainty could be driving the surge in demand for alternative investments.
Analysts at Wells Fargo estimate that Costco’s gold bullion sales generate between $100 million and $200 million per month.
However, financial experts warn that investing in gold is not without risk.
The Commodity Futures Trading Commission (CFTC) has warned that precious metals are volatile.
Because precious commodities are not always safe investments, the CFTC stressed the importance of due diligence.
Despite these warnings, Costco’s gold bars continue to draw a wide range of customers.
The company’s reputation for quality and value has made it a preferred destination for bullion enthusiasts.
Costco has even expanded its precious metals selection to include silver coins and one-ounce platinum bars.
With purchase limits in place and a growing product line, Costco is navigating the gold rush by taking strategic steps to balance customer interest and inventory management.
