For many, a Costco (COST) membership is as good as gold. And, for some, a membership means buying gold. Just not too much of it.
The retailer’s gold bars have garnered much attention since their June 2023 launch. And now, the gold has proven so popular that the chain recently placed a one-bar limit on purchases.
A visit to Costco.com Tuesday morning lists 1 oz Gold Bar PAMP Suisse Lady Fortuna Veriscan (New In Assay) for a price of $3,389.99, which includes shipping and handling. Customers appear to be pleased, giving the gold bar at 4.8 out of 5 stars.
Anyone who bought a gold bar last year would have seen a tidy profit on their investment, as they were selling for $2,779.99.
In April 2024, Wells Fargo (WFC) estimated that Costco was raking in as much as $200 million per month in revenue from its gold bar sales alone. Gold has been trading near record highs lately as investors flock to more stable commodities amid market turmoil. Costco did not respond immediately to requests about the new limitations.
In 2024, Wells Fargo equity analyst Edward Kelly said in a note to clients: “Our work suggests there has been significant interest given COST’s aggressive pricing and high level of customer trust… The accelerating frequency of Reddit posts, quick on-line sell-outs of product, and COST’s robust monthly eComm sales suggest a sharp uptick in momentum since the launch.”
And it appears that momentum is continuing in the form of a gold rush.
The post Costco is limiting gold bar purchases as demand surges appeared first on Quartz.
