Photo: Costco
Last summer, Costco began offering one-ounce gold bars for sale. The products have been massively popular, with the wholesale retailer selling up to $200 million worth of golf monthly. So how have customers done with their purchases?
Well anyone who bought a bar earlier this year or last year has seen the value of their purchase increase. Those who got a bar when they first went up for sale back in September paid $1,949 for the one-ounce, 24-karat item. This week, that same bar costs $2,369.99. Even if they got a bar January it is a huge jump, since those customers paid $2,069.99 per bar. So selling their gold now would make them a few hundred bucks in profit.
There are a few reasons why gold prices are on the rise. For one, many investors expect the Federal Reserve to cut interest rates. Any time that happens, gold becomes much more appealing than anything that pays income. Meanwhile, many banks are buying up gold as well, especially foreign ones so they aren't as reliant on US dollars in a potential time of economic turmoil. Additionally, more people are buying gold due to inflation.
While Costco often sells out of the gold bars, they are consistently getting more in stock. They've also started offering two new gold products - the one-ounce American Eagle Gold Coin and the one-ounce American Buffalo Gold Coin. In addition, they've increased the limit each customer can purchase from two to five.
You can learn more at Costco's website.