Costco’s Gold Rush: How the Retail Giant Sold $100 Million in Gold Bullion
If you thought Costco was only for buying bulk items like toilet paper and frozen pizza, think again. The retail giant has been quietly selling gold bars in its stores since 2022, and customers can’t get enough of them.
According to Costco’s latest earnings report, the company sold over $100 million worth of gold bars in the first fiscal quarter of 2024, up 25% year-over-year. The gold bars, which are available in different sizes and weights, come from well-known suppliers and are certified by the London Bullion Market Association (LBMA).
Why do Costco customers buy gold bars?
There are several possible reasons. Some may see gold as a safe haven during times of economic uncertainty and inflation. Others might be attracted by the low prices and convenience of buying gold at Costco, where they can also earn cash back rewards and free shipping. And some may like the idea of owning a shiny piece of metal that has been treasured for centuries.
Whatever the motivation, Costco’s gold sales are a testament to the company’s ability to cater to the diverse needs and preferences of its customers. Richard Galanti, Costco’s CFO, said in a conference call with analysts: “We are always looking for new ways to provide value and quality to our members, and gold bullion is no exception.”
