Current:Home > FinanceCostco stores selling out of gold bars, survey finds -TradeStation
Costco stores selling out of gold bars, survey finds
View
Date:2025-04-12 22:04:48
Costco appears to have found a revenue mine with sales of gold bars, as a survey found that some warehouses are unable to keep them on shelves.
Bloomberg found that 77% of the 101 stores it surveyed in the first week of October had sold out of the bars, the financial news outlet reported Monday.
In its fourth quarter earnings call, Costco CEO Gary Millerchip said that the metal "was a meaningful tailwind to e-commerce comps." An April Wells Fargo report stated that the bank's analysts believe that the warehouse retail giant is selling between $100 million to $200 million in gold per month.
USA TODAY previously estimated that Costco sells between 50,000 and 100,000 ounces of gold per month, using the Wells Fargo analysis.
Gold remains high as inflation cools
The metal, historically a hedge against inflation, has remained near record highs after seeing a 30% increase in its spot price this year even as inflation has cooled.
Capitalize on high interest rates: Best current CD rates
Costco's success comes as other areas of the gold market has weakened, notably the American Eagle gold coins − a proxy for retail gold buying − fell 64% between January and September of 2023, according to US Mint Data.
Zachary Scott, the general manager of Wilshire Coin in Santa Monica, Calif. Scott told USA TODAY in April that he is seeing customers who are "less than typical" brought in after seeing gold being sold by "a trusted company."
"It's bringing in new buyers and interest, though not in massive amounts, who have seen the articles around Costco selling gold," Scott said.
Platinum onramp follows gold success
The success of Costco's forays into the precious metals market led the company to introduce platinum to the lineup.
The bar offered by Costco retails for $1,089.99 and is sold exclusively online.
The company describes the new platinum bars as 999.5 pure platinum made in Switzerland. The refiner has also earned the Good Delivery accreditation from the London Bullion Market Association, is an international trade association linked with the precious metals industry, the company said.
Contributing: Fernando Cervantes Jr.
veryGood! (63714)
Related
- Sarah J. Maas books explained: How to read 'ACOTAR,' 'Throne of Glass' in order.
- Yes, people often forget to cancel their monthly subscriptions — and the costs add up
- Trades dominate the day as NFL teams trim rosters to 53 players
- 'Kind of used to it:' Not everyone chooses to flee possible monster Hurricane Idalia
- See you latte: Starbucks plans to cut 30% of its menu
- Nebraska tight end Arik Gilbert arrested on burglary charge
- Shooting at White Sox game happened after woman hid gun in belly, per report
- FBI and European partners seize major malware network in blow to global cybercrime
- What to watch: O Jolie night
- Companies are now quiet cutting workers. Here's what that means.
Ranking
- The Daily Money: Spending more on holiday travel?
- Why are hurricane names retired? A look at the process and a list of retired names
- Best Buy CEO: 2023 will be a low point in tech demand as inflation-wary shoppers pull back
- The problems with the US's farm worker program
- Federal appeals court upholds $14.25 million fine against Exxon for pollution in Texas
- Angels go from all-in to folding, inexplicably placing six veterans on waivers
- Majority of Americans support labor unions, new poll finds. See what else the data shows.
- Teachers go on strike in southwest Washington state over class sizes
Recommendation
Opinion: Gianni Infantino, FIFA sell souls and 2034 World Cup for Saudi Arabia's billions
How to win USA TODAY Sports' NFL Survivor Pool: Beware of upsets
Shooting at White Sox game happened after woman hid gun in belly, per report
India’s moon rover confirms sulfur and detects several other elements near the lunar south pole
DoorDash steps up driver ID checks after traffic safety complaints
2 found dead in Michigan apartment with running generator likely died from carbon monoxide
Louisiana plagued by unprecedented wildfires, as largest active blaze grows
As more teens overdose on fentanyl, schools face a drug crisis unlike any other