People Are in a Rush to Buy Gold at Costco, But Should You Join The Craze?

They sell out instantly

Costco frequently offers gold bars for around $2000, selling out instantly. The unusual item started selling last October, and Wells Fargo estimated that it has made the retailer up to $200 million so far. 

Behind the gold rush 

Experts claim the vast interest in buying gold comes from the feeling of uncertainty. Despite the gold rush, data suggests that these sales are low, with some believing it was a way to attract customers, as Fortune writes. Gold buyers are primarily millennials, The Wall Street Journal commented, adding it was due to a lack of trust in the financial system. 

Members only 

The intriguing business move allows only members to buy gold, and purchases are non-refundable. Only one transaction per membership is permitted, but up to five bars may be purchased per transaction. 

For generations to come 

Some people shared on social media what made them buy gold. One viral video showed a younger woman saying she plans to keep it and even pass it down to new generations. 

Buying gold while shopping for groceries 

A couple spoke to 6abc and explained they were buying groceries but could not get gold bars out of their minds. That’s why they had to get them, and they explained that it was an investment. Additionally, it was reassuring that they always knew where it was. 

Price of gold 

Despite being worth almost ten times more than in 2000, gold has ups and downs. In 2011, it was $1,800 per troy ounce but went below $1,100 in 2015. While historically, people see gold as a barrier to fighting inflation, it comes with uncertainties. 

The good and the bad sides of buying Costco gold 

Many noticed that Costco prices are around 2% above the day’s spot gold price. However, there is free shipping, and you don’t have to pay a credit card fee. Gold prices are considered erratic, so the 2% from a trusted seller with these benefits is a good deal if you choose to invest in gold.

Sign of the times 

Apart from feeling uneasy, buyers also diversify and balance their investment portfolios. Yet, some warn that precious metals are volatile, so if hard times hit, the only ones profiting are the sellers. But, if you’re not into gold, there’s more that Costco has to offer. 

Silver coins 

The company also offered now-sold-out silver coins. A pack of 25 one-ounce silver coins originally cost $625. The terms and conditions that apply to gold also apply to silver coins. Regardless of which precious metal you choose, educating yourself on safe trading practices is a must. 

Searching for an alternative 

Some people who bought Costco’s precious metals expressed anxieties over the faith of the US dollar, inflation, recession, and world wars, so these deals offered them a sense of independence despite the instabilities—some plan to put it in their portfolios, 401ks, or a deposit box.  

Costco’s membership prices

Once Costco announced the sale of precious metals, people wondered if it was a sign that membership would increase. The last time the company raised membership prices was in 2017, so the officials confirmed it was not a question of if but when. 

The current cost of membership 

Costco offers three types of membership: Executive, Business, and Gold Star. The Executive membership costs $120 for two household cards annually, the Business membership $60 annually, and the Gold Star membership $60.