No one expected this Costco item to be flying off the shelves

Photo by Tim Samuel from Pexels

Thanks to Bidenomics, many Americans have turned to buying items in bulk, so interest in buying memberships at box stores is going up.

Membership stores often have good deals and unique items you can’t get at the regular grocery store.

But people were shocked when they found out they could buy this item at Costco and it is flying off the shelves.

Costco sees sales of gold bars climb

During the COVID-19 pandemic, shoppers flocked to the popular retailer Costco to buy items like toilet paper in bulk.

The retailer’s $1.50 hot dogs continue to be a customer favorite.

Now, the store is selling a hot new product to its members: gold bars.

As the price of precious metal reached an all-time high this month, many Costco members are thrilled to be able to get in on the opportunity to buy gold.

Since Costco started selling gold, many members have been grabbing them while they go to the store to stock up on other items like bulk produce, beverages, and snacks.

The retailer started selling one-ounce gold bars in the summer of 2023 and has seen interest from consumers continue to climb ever since.

Wells Fargo analysts sent a note to clients saying they expect the revenue from Costco’s gold sales to be between $100 million and $200 million monthly because ever since the Swiss-made gold bars were offered at Costco, they’ve been selling like hotcakes.

The store itself receives a fairly low premium for the gold, and it also offers cash back to some buyers who use credit cards, so the gold isn’t boosting the retailer’s profits in a very significant way.

Investors say that now is a great time to buy gold since the price of the commodity has reached an all-time high of $2,390 per ounce on April 12.

Gold has outperformed the S&P 500 so far this year, and it’s likely to continue to do so as long as the Federal Reserve keeps holding to its current interest rate policy.

Gold prices also tend to see a boost when there is lingering inflation and low consumer confidence.

Gold is a good investment for many Americans

Now that the average American can drive over to Costco and pick up a gold bar or two, the question of whether or not it’s a good investment has come into the spotlight.

Some investors say that holding gold in an investment portfolio is a smarter financial move than owning physical gold.

Costco buyers pay a markup on the bars, known as a spread.

The store is currently charging 2% above the market rate, which is not unusual and falls within the industry range.

Shoppers who use Citigroup credit cards can receive 2% cashback on their purchases, negating the premium altogether.

While most of Costco’s products are sold in bulk, the retailer is not offering the same for gold bars.

Buyers are limited to five bars per transaction, so if they want to stock up, they’ll need to make several separate trips or opt to buy gold from a precious metals dealer. 

Informed American will keep you up-to-date on any developments to this ongoing story.