Costco is limiting gold bar purchases after a massive surge in popularity. The retailer’s 24-karat gold bars, introduced in June 2023, have flown off the shelves.
Gold Fever at Costco
Bloomberg reports that by early October 2024, most Costcos selling the gold bars were completely sold out, despite recent restocks. This incredible demand comes amidst record-high gold prices, fueled by inflation concerns. Gold prices have continued to climb, recently reaching $3,248 per ounce after hitting a peak of $3,500.
New Purchase Restrictions
To manage the frenzy, Costco has implemented new purchase limits. Customers are now restricted to one transaction per membership, with a maximum of two gold bars every 24 hours.
A Goldmine for Costco?
The popularity of Costco’s gold bars is undeniable. Wells Fargo analysts previously estimated that Costco was raking in around $200 million a month from gold bar sales alone. They attributed this success to Costco’s competitive pricing and strong customer trust. The quick sellouts and online buzz further highlighted the intense demand.
Beyond Gold
Costco also offers silver and platinum bars, though the extent of their popularity isn’t specified.