Costco’s prime sale- 77% of stores sold out_1
As gold prices reach unprecedented levels, Costco is witnessing an extraordinary surge in demand for gold bars. By early October, 77% of its U.S. locations had sold out of these prized items. With gold prices hitting record highs, shoppers are flocking to Costco, eager to benefit from member discounts and earn reward points—making it an appealing option for those looking to safeguard their investments against inflation.
According to Bloomberg, the price of spot gold has surged nearly 30% this year compared to last year, consistently breaking records. This dramatic rise not only positions gold as one of the best-performing commodities but also underscores its advantages over U.S. stocks and bonds. The growing popularity of gold as a safe-haven asset during times of geopolitical and economic uncertainty, combined with its established role in wealth preservation, has propelled this upward trend. Just last month, gold prices eclipsed $2,600 per ounce, with this notable increase being further fueled by the Federal Reserve’s interest rate cuts, which typically enhance the attractiveness of non-yielding assets like gold.
Costco lists the pre-tax price for a 1-ounce gold bar at $2,689.99, but currently, they are sold out. The competitive pricing at Costco compared to traditional precious metals dealers, alongside the incentive of membership rewards, has led to a swift sell-out of gold bars. As of the first week of October, around 77% of Costco stores across the U.S. were out of stock—a statistic based on Bloomberg’s inquiries at 101 Costco locations in 46 states.
Moreover, signs indicate that financially strained Americans are seizing the opportunity presented by soaring gold prices. Many Costco shoppers are buying gold bars in bulk, with some selling their gold for profit. Pawn shops and jewelry stores in New York are reporting a marked increase in sellers. This trend has also attracted new buyers to the retail gold market. Costco began offering gold bars at its U.S. stores and on its official website last June. These Swiss-made, 24-carat gold bars are cleverly packaged in a manner reminiscent of chocolate bars, using cardboard and plastic. During a financial earnings call in September, Costco’s leadership confirmed the strong popularity of their gold products, which generated over $100 million in sales within just one fiscal quarter—equivalent to approximately 51,740 ounces of gold at average prices.
Gary Millerchip, Costco’s Chief Financial Officer, emphasized in an email that gold and silver sales continue to play a pivotal role in the company’s e-commerce growth. Stefan Gleason, CEO of a leading U.S. precious metals retailer, commented that Costco’s offerings have made gold ownership more accessible than ever. While investing in jewelry remains a common choice, it’s estimated that less than 2% of Americans own gold or silver. An increase to even 5% or 10% could substantially reshape the market.
One shopper, Ms. Li, a Chinese-American, has attempted to purchase gold bars from Costco multiple times without success. She observes a significantly higher interest in gold within the Chinese community compared to other ethnic groups. Ms. Li mentioned that in Mainland China, daily trends encourage gold purchases, which makes finding gold bars at her local Costco particularly challenging. Regular trips to a more mainstream Costco store have become necessary; however, with prices increasing—now at least $800 more than during her last visit—securing a purchase is becoming increasingly difficult.
