It’s official: Gold fever has spread to the aisles of your local Costco, and members are snapping up bullion faster than you can say “bulk savings.” With gold prices hitting record highs this year, the warehouse giant is now a go-to spot for people looking to stash away some precious metal. And who knew? Between the discounted tires, giant jars of peanut butter, and $1.50 hot dogs, Costco has become a surprising player in the gold market, offering prices that put many traditional dealers to shame.
Take Sourav Sethia, an analytics engineer from New Jersey who’s already a repeat buyer. He’s on the “VIP list,” getting calls from Costco whenever those coveted gold bars restock. And let’s face it, he’s not the only one keeping an eye on the prize. As Sethia’s story illustrates, there’s a whole new wave of retail buyers ready to jump on a deal as soon as it hits the shelves. With one-ounce gold bars priced at $2,699.99 during a recent promotion, Costco is attracting buyers looking for a hedge against inflation—people who are more than happy to mix their grocery run with a little wealth preservation.
It turns out that Sethia’s shopping habits aren’t just an isolated case. According to a Bloomberg survey, nearly 77% of the Costco stores that stock gold bars were sold out in the first week of October. And while the company isn’t spilling the beans on exact numbers, the frenzy is undeniable. Just ask the folks over on Reddit or TikTok, where people share tips on which stores have gold in stock and proudly post their finds online. For many, it’s become a new kind of treasure hunt.
But it’s not just the thrill of the buy driving people to pick up gold at Costco. It’s the added perks, too. With an executive membership and a Citi credit card, customers can get up to 4% back on their gold purchases. When you’re dealing with a commodity that doesn’t generate cash flow, a little extra cashback doesn’t hurt. Plus, Costco’s premiums on gold bars are significantly lower than those at most precious metals dealers, making it a no-brainer for many buyers. For Houston money manager Josh Young, grabbing a gold bar was about more than just beating inflation—it was a “too-good-to-be-true” deal in a time when financial risks are everywhere.
You can’t make this up:
People are now buying gold bars at the Costco self checkout.
Costco is selling over $200 million of gold bars every month.
But don’t worry, the economy is “strong.” pic.twitter.com/TWH9U3wZ2z
— The Kobeissi Letter (@KobeissiLetter) April 12, 2024
Even as more Americans cash in on gold’s high prices—flooding pawn shops and unloading gold coins—Costco stands out as a “bright spot” in the retail gold-buying market, according to experts like Nicky Shiels of MKS PAMP SA. While U.S. Mint data shows a steep decline in American Eagle coin sales, Costco’s appeal to a broader audience is giving gold a different kind of shine. It’s not exactly going to move global markets—after all, central banks still dominate the big numbers—but the enthusiasm from everyday buyers is a signal that gold’s allure remains strong. And, according to Matt Schwab of Quantix Commodities, that retail demand could even serve as a steady source of support for the metal.
Costco’s foray into gold sales comes amid a perfect storm of economic anxiety, geopolitical uncertainty, and the Federal Reserve’s pivot to interest rate cuts, which has made non-yielding gold all the more attractive. With prices up nearly 30% this year, gold is outperforming both stocks and bonds. It even crossed the $2,600 per ounce mark last month, making it one of the few assets delivering solid returns in a shaky market. And now, with Costco stepping into the game, gold is no longer just a luxury item bought through brokers or niche online marketplaces—it’s something you can pick up while grabbing a rotisserie chicken and a new TV.
COSTCO selling 1 oz Platinum bars for almost $1100 now; 10% over the spot price of $1000.
Costco sells $200 million per month in gold bars.
CNBC: “We’ll see how this one picks up with consumers.”
Or you could just buy #bitcoin 🤷♂️ pic.twitter.com/HUsxwRULzg
— parachutesBTC (@parachutesBTC) October 2, 2024
Of course, not everyone is a fan of the new trend. Some traditionalists see retail gold buying as a fad, dismissing it as “dumb buying” by inexperienced investors. But Stefan Gleason, CEO of Money Metals Exchange, argues that this new accessibility could actually shake things up. With only a tiny fraction of Americans owning gold, even a small uptick in interest could disrupt the market. If just 5% to 10% of Americans get into gold, it could be a game-changer.
So, while Wall Street might raise an eyebrow at people buying gold next to their Kirkland-brand cereals, Costco is proving that even the most traditional of investments can find a home in the aisles of a big-box store. And with economic uncertainty showing no signs of letting up, it looks like those gold bars will keep flying off the shelves—right along with the toilet paper and bulk snacks.
