Rising demand for the precious commodity has resulted in rapid sellouts amid economic uncertainty.
The wholesale retailer’s 24-karat gold bars have gone viral, with many disappearing from stock just hours after restocking.
The gold bars, which were first introduced in 2023, range in price from $1,950 to $1,980 and are available in options such as the PAMP Suisse Lady Fortuna Veriscan and the Rand Refinery’s South African bullion.
Despite the high price, customers have rushed to purchase them, hoping that the bars will serve as a hedge against economic insecurity.
Costco’s website now allows members to purchase only two gold bars per 24-hour period.
“Purchase limit of two,” states a notice under the new 1-ounce.9999 Gold Bullion listing.
“This item is non-refundable and non-returnable.”
MEMBER REACTIONS
Reddit users in the Costco subreddit were quick to notice the change and share their thoughts on the gold-buying craze.
“Best investment [right now],” one user wrote.
“I saw it on the news that Americans are buying gold to safeguard savings from the current chaos,” a different person replied.
“Once it hits the news it becomes a bad idea to jump in on the trend as a buyer.”
“If it gets to the point where the dollar is worthless, we got a lot of other stuff to worry about besides money,” a different person said.
SELLING FAST
According to a Bloomberg survey, approximately 77% of Costco stores in 46 states sold out of gold bars within a week of October 2024.
Analysts at Wells Fargo estimate that Costco’s bullion sales generate between $100 million and $200 million per month.
The panic-buying of gold reflects a larger trend in which consumers seek tangible assets in an uncertain economic climate.
Not everyone believes it is a wise investment, however.
The Commodity Futures Trading Commission (CFTC) recently issued a warning that precious metals, including gold, can be volatile and are not always safe investments.
The agency emphasized the importance of conducting thorough research before purchasing.
Still, the excitement surrounding Costco’s gold shows no signs of waning.
The company has embraced the trend by expanding its precious metal offerings to include silver coins and one-ounce platinum bars.
Costco’s purchase limit is currently used to balance high demand with inventory control.
