20/12/2023
“You’ve probably read about the fact that we’re selling one-ounce gold bars. We sold over $100 million of gold during the quarter [that ended Sept. 30],” Richard Galanti, the chief financial officer of Costco, said during an earnings call on Dec. 14. This was the first quarter of fiscal 2024 at Costco.
The wholesale retailer started selling gold online in September. In an earnings call late that month, Mr. Galanti had alluded to massive demand for the product. “When we load [gold bars] on the site, they’re typically gone within a few hours.” At present, Costco has listed two one-ounce gold bars for sale—one from PAMP Suisse Lady Fortuna Veriscan and the other from Gold Bar Rand Refinery. Both items are listed as 24-karat gold available for members only and limited to two bars per member. Costco offers three types of memberships: gold star and business memberships, which cost $60 yearly each, and an executive membership that costs $120.
The gold bars were listed for sale at $2,069.99 on Dec. 15, according to CNBC. At the time, this was nearly $50 higher than the spot gold price of $2,020.58. Both items are shipped via UPS and delivered in two to five days to customers across the United States. Once sold, the gold bars can’t be returned or refunded.
Costco’s $100 million gold sales come as the retailer continues to report strong profits and the company’s shares have surged this year. Meanwhile, gold prices have also risen. Year to date, Costco shares have risen by more than 45 percent as of the morning of Dec. 18. Gold prices have jumped from about $1,797 per ounce to $1,984 during this time, an increase of more than 10 percent.
Gold price today... $US 2066