Posted on 12/15/2023 9:32:32 AM PST by algore
A new type of gold fever has hit the retail market as Costco can’t keep enough of the precious metal on its digital shelves.
Costco started selling gold bars to its North American customers earlier this year, and according to the retailer’s third quarter earnings, the move is paying off.
In the company’s earnings call on Thursday, CFO Richard Galanti said that Costco sold $100 million in one-ounce gold bars between July and September.
According to media reports, during the call Galanti was asked what consumer trends Costco was seeing this holiday season; he answered: "They're buying gold."
In 2020, Costco started selling gold to its U.K. members and added it to North American stores earlier this year. Members are limited to two bars from the same supplier each and according to Galanti, the gold sells out in hours.
Gold isn’t the only unique item for sale at Costco. The company said that it sold an index card autographed by baseball legend Babe Ruth for $20,000.
The strong retail demand for gold bullion comes as prices trade above $2,000 an ounce.
While higher prices could curtail future physical demand, some analysts expect that retail purchases to remain fairly healthy through 2024.
In a recent interview with Kitco News, Joseph Cavatoni, North American markets strategist at the World Gold Council, said that although gold prices are elevated, the price is less elastic than some would expect.
“If prices are expected to go higher than $2,000, it’s not much of a barrier for consumers,” he said.
Costco may sell you gold, but they sure won’t buy it back from you.
if anyone wants to buy me gold bars for christmas I would be fine with that.
in fact those look like they would make great tree ornaments if I had enough of them
Isn’t that a risky purchase to be making while in a crowded shopping warehouse, where someone may be standing with their shopping cart, staring as you accept personal possession of GOLD? Maybe they have the gold transactions done in a semi private part of the store, behind a beaded curtain.
What is the actual physical size of those?
There was a story some years ago about counterfeit gold bars from China. It turned out to be gold plated tungsten. Almost the same weight as real gold. I would think twice before buying gold from Costco.
https://www.pamp.com/product/minted-ingots/pamp-suisse-9999-pure-1oz-gold-bar
24 x 41mm. (very roughly about 1” x 1 1/2”)
1 ounce
Most of the buyers were named Patel.
Dealers don’t care what the price is, they make their money off the spread. That’s why they’ll sell it to you anytime, they are charging you above the market price to buy and they pay you below the market price when you sell. You carry all the risk, they have guaranteed profit with no risk. If the price stays the same or only goes up slightly, you lose money.
I suggest staying up all night with a shotgun in case Santa or one of his elves comes calling.
“There was a story some years ago about counterfeit gold bars from China. It turned out to be gold plated tungsten. Almost the same weight as real gold. I would think twice before buying gold from Costco.”
I sold a few bars to a local coin store (I needed cash more than gold). They showed me a counterfeit bar. I believe they caught it by weighing. It looked 100% real, serialized assay package and everything. They had cut it open to expose the filler. It made me very suspicious about buying gold, although I’m considering it now. I like to buy high and sell low. That’s how I operate.
The government likes to spend tax dollars high and give away free to frivolous causes. Easy to do when it's your money, that's how they operate. People like us can't get ahead under Biden.
Thanks!
OPM...
Yes, other peoples' money. It occurred to me that OPM also is an acronym for U.S. Office of Personnel Management (OPM.gov). Part of their banner on their official website is a rainbow colored "O" part of the "OPM" logo. They sure like spending our tax dollars on wasteful operating causes.
But only the one with the chocolate ticket inside gets you into Willy Wonka’s factory.
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