Costco, the US retail warehousing giant, has expanded its range of offerings for its members by adding one ounce PAMP Suisse Lady Fortuna Veriscan gold bars to its selection.
This addition allows members to purchase gold bars at a bargain price directly from Costco’s official website. It’s worth noting that there is a limit of two gold bars per member.
The price of these gold bars may change depending on where you live. In Canada, they are selling for about C$2,679.99 each, which is roughly US$1,985.20 per ounce.
Each bar contains 24 karat 99.99 percent pure gold. However, Costco’s website mentions that they are not eligible for price adjustments or special deals.
Gold bars are in high demand
Costco’s gold bars are in high demand, and it appears that people are eager to get their hands on them. Richard Galanti, the company’s chief financial officer, shared some insights on this matter.
He mentioned that as soon as Costco makes these one ounce gold bars available on their website, they quickly disappear. Moreover, he confirmed during a recent conference call that they often sell out within just a few hours, as reported by Mining.
While there’s significant interest in Costco’s gold bars, there are some important factors to consider. Each member is limited in how many gold bars they can purchase, making it challenging for anyone to accumulate enough gold for a substantial investment.
Wow – did you know Costco sells a 1 ounce gold bar? pic.twitter.com/1KBIMo4MLT
— Rickie Miyake (@RickieMiyake) September 26, 2023
Furthermore, it’s worth noting that Costco requires a membership, which comes with its own costs. These membership fees could reduce any potential profits from investing in gold.
Jonathan Rose, co-founder of Genesis Gold Group, shared his perspective, saying, “At the very least, though, it’s an effective promotion and one that could appeal to a certain sector of Costco’s shopping clientele.”
Rose pointed out that Costco seems to be ramping up its offerings of dried foods and other items aimed at those concerned about the economy’s future.
This includes a 150-serving emergency food preparedness kit, which can be useful for unexpected situations. He also noted that selling gold aligns with this trend.
Costco fighting rising retail theft
Costco’s decision to offer gold bars comes at a time when the company is grappling with the challenge of increasing retail theft, reported Daily Mail.
Shoplifting has been on the rise in recent years, leading to store closures by several major retailers such as Target. These companies are dealing with significant losses due to theft.
However, during Costco’s quarterly earnings call, which is the same call during which Richard Galanti, the company’s CFO, spoke about the gold bar sales, he assured shareholders that the brand was managing the situation well. “Thankfully, it’s not a big issue for us,” he admitted.