Costco, the popular warehouse retailer known for its bulk household products and discount deals, is expanding its investment offerings by selling gold and silver. Previously, Costco only sold gold bars, but now they have introduced silver coins to their lineup. This move allows customers to diversify their investment portfolios while shopping for everyday items.
In October 2023, Costco started selling 1-ounce 24-karat gold bars priced at around $2,000. The response was overwhelming, with the company selling over $100 million worth of gold bars in just three months. Richard Galanti, Costco’s chief financial officer, stated that the gold bars would often sell out within hours of being listed on the website. Customers were limited to purchasing a maximum of two gold bars per member.
Following the success of their gold sales, Costco recently began selling silver coins. These 1-ounce Canada Maple Leaf Silver Coins are sold in tubes of 25 and priced at approximately $680. However, they are currently sold out online. The good news is that Costco states these coins may be available at local warehouses at a lower price. Customers can purchase a maximum of five tubes of coins, and they are non-refundable.
The decision to sell gold bars and silver coins comes as the value of these precious metals is expected to rise in 2024. Analysts predict that the Federal Reserve’s anticipated interest rate cuts will push the value of gold higher. Additionally, a weaker dollar is also expected to contribute to the increase in gold prices. Precious metals strategist Joni Teves from UBS investment bank forecasts that gold could reach $2,200 per ounce by the end of the year. Currently, gold is trading at $2,178.60 per ounce, up more than 5% for the year.
While gold has been performing well, silver has been underperforming in comparison. Teves suggests that silver has catching up to do and expects its value to rise dramatically. Silver is currently priced at $24.35 per ounce, up 2% for the year.
Costco’s decision to expand its investment offerings aligns with its commitment to providing value and convenience to its members. By offering gold and silver, Costco allows its customers to invest in precious metals while shopping for their everyday needs. This move has been met with enthusiasm, as evidenced by the surge in sales of gold bars and the high demand for silver coins.
In other news, Costco’s stock price experienced a slight decline after reaching an all-time high. Despite surpassing expectations in various measures, the company’s revenue fell slightly short. Investors had anticipated a potential increase in membership prices, which Costco has not done since June 2017. However, CFO Richard Galanti stated that a price increase would happen at some point, most likely under the leadership of the incoming CFO, Gary Millerchip.
As Costco continues to innovate and meet the evolving needs of its members, the introduction of gold and silver sales adds another dimension to their offerings. Whether customers are looking to stock up on household essentials or diversify their investment portfolios, Costco remains a one-stop shop for both everyday items and valuable assets.