Costco makes hundreds of millions from 24-karat gold bar sales
![Costco makes hundreds of millions from 24-karat gold bar sales Costco makes hundreds of millions from 24-karat gold bar sales](https://newsnetdaily.com/wp-content/uploads/2024/04/costco-gold-bar-ht-lv-240411-4_1712853911307_hpMain_16x9.jpg)
Costco may be known for its exclusive prices on everything from high-end spirits to food court hot dogs, but an influx of members are digging for gold.
The big-box retailer, which began selling one-ounce, near-pure 24-karat gold bars priced at about $2,000 last fall, has recently seen growing consumer interest amid inflation and economic uncertainty.
“It’s a currency that’s been around for thousands of years. It’s something that retains its value and increases in value over time,” said Hitha Herzog, retail analyst and director of research at H Squared Research, at ABC News. .
A Costco web page featuring a 1 ounce PAMP Suisse Lady Fortuna Veriscan gold bar and a Costco membership card are pictured in this photo, in New York on October 4, 2023.
Richard Drew/AP
In a new equity research note from Wells Fargo, the bank estimates that Costco generated between $100 million and $200 million per month in gold bullion sales.
“We view the addition of gold and silver as a smart move for Costco, as it only strengthens its value position,” the report said. “That being said, pricing at this level and shipping costs suggest that this is, at best, a very low-profit business.”
Although the price is not disclosed online to non-members, the product typically sells for nearly 2% above the spot price, which at the time of publication was approximately $2,354 per troy ounce, up more than $350 since 2023.
![PHOTO: Costco 1 Ounce PAMP Suisse Lady Fortuna Veriscan Gold Bar is seen in this image.](https://i.abcnewsfe.com/a/c5eb690b-cc58-497d-a220-9e072cd5c9d1/costco-gold-bar-ht-lv-240411-2_1712853736939_hpEmbed_16x9.jpg)
The Costco 1 ounce PAMP Suisse Lady Fortuna Veriscan gold bar is seen in this image.
Costco
![PHOTO: Costco 1 Ounce PAMP Suisse Lady Fortuna Veriscan Gold Bar is seen in this image.](https://i.abcnewsfe.com/a/6557a0e2-886c-4a5d-bb70-2639253246ee/costco-gold-bar-ht-lv-240411_1712853736940_hpEmbed_16x9.jpg)
The Costco 1 ounce PAMP Suisse Lady Fortuna Veriscan gold bar is seen in this image.
Costco
Personal finance content creator Humphrey Yang told ABC News he purchased one of the bars at Costco for $2,359.
“I think I’m going to keep it as long as possible and maybe I can pass it on to a future generation,” he said.
Gold is not a guaranteed investment and has fluctuated before reaching today’s record levels.
![PHOTO: Costco 1 Ounce PAMP Suisse Lady Fortuna Veriscan Gold Bar is seen in this image.](https://i.abcnewsfe.com/a/ef3d5b7d-c5d0-48c0-9941-91e502d61863/costco-gold-bar-ht-lv-240411-3_1712853736892_hpEmbed_16x9.jpg)
The Costco 1 ounce PAMP Suisse Lady Fortuna Veriscan gold bar is seen in this image.
Costco
“The idea is that gold retains its value and that’s why people want to have it as a potential investment in their portfolios,” Herzog said.
Costco limits the amount of gold members can purchase to just 5 ounces per customer.
For those looking to make a short-term investment and considering selling, there is the possibility of a short-term capital gains tax of between 10% and 30%.
ABC News