The price of gold has hit new highs repeatedly, and many people are simply buying gold to invest and maintain their value. It has become a cash cow for Costco, which originally relied on selling daily necessities. Some reports estimate that Costco’s monthly gold bar sales can reach up to 200 million US dollars, equivalent to nearly 1.6 billion Hong Kong dollars. The income from gold bars is always better than selling toilet paper.
Selling gold bars is better than selling toilet paper. Costco’s monthly gold bar sales in the United States reach 1.6 billion. (Reddit r/Gold u/goldticketstubguy, profile photo)
U.S. stocks and foreign currencies real-time quotes and news from many countries can be viewed at any time
Market demand is huge, Costco gold bars are selling well
The price of gold has increased from US$2,000 at the beginning of this year to close to US$2,400 recently. It outperforms many investment tools. Its value preservation and low risk make it a hot purchase target for the American people. Costco has launched a variety of gold bar products that have become popular in the past year. According to a recent report to clients by Wells Fargo analyst Edward Kelly, Costco’s monthly gold sales amounted to US$100 million to US$200 million. He pointed out: “Because Costco’s aggressive pricing strategy and high level of customer trust have significantly increased consumers’ interest in buying gold.”
He also pointed out that the frequency of relevant information in the “American Continent” Reddit posts continued to accelerate, and the gold products were quickly sold out on its website and drove online sales, showing that Costco has strong sales momentum after selling gold, so it has monthly sales of 100 million to 200 million. US dollar projections. This wave of rising gold prices began in October last year, when the low was around $1,800. Although the price of gold has fallen slightly in recent days due to the unexpectedly high inflation data in the United States, it still maintains a high of $2,380.
Costco’s one-ounce gold bars were sold out within hours of going on sale. (costco.com)
Despite flash sales, Costco’s profits are not high
Although Costco gold bars are usually about 2% to 7% higher than spot gold prices, Costco members can get up to 4% rebates on purchases. In addition, Costco has a good reputation and gold bars are produced by well-known foundries, so they are highly recognized and easier to resell. , if you buy two gold bars in California, you will get a tax-free discount, so it is very popular among customers. Earlier, the Costco website launched a 24K pure gold bar called Suisse Lady Fortuna Veriscan, each one ounce (31.1 grams) ), with a limit of two per person, and sold out quickly within four hours of the sale. Many customers in Xiangyu asked online when they would be replenished.
Currently, Costco limits the purchase of gold bars per customer to five bars, which is higher than the previous limit of two bars. This is obviously beneficial to Costco’s revenue, but it may not contribute much to profits. Customers can buy gold bars but With various rebates and high operating costs, analysts believe that the actual profit from gold sales is not particularly high.
Costco in the United States is always crowded. In addition to toilet paper, gold bars have also become its best-selling items. (AP Photo/Audrey McAvoy) (ASSOCIATED PRESS)
Millennials buy gold to fight inflation
It is worth noting that buying gold bars is no longer the exclusive preserve of the older generation. Young customers have now become a new force in buying gold at Costco, hoping to achieve the anti-inflation effect. Research from State Street Bank shows that Millennials (28 to 43 years old) are optimistic about the benefits of gold and the ease of buying and selling, accounting for about 17% of investment portfolios. Compared with Generation X (44 to 59 years old) and baby boomers (60 to 78 years old) only accounts for about 10% of the investment portfolio; however, the research report reminds gold to perform better when the economy is poor, otherwise it will underperform other investment products.
2024-04-13 19:01:09
#Selling #gold #bars #selling #toilet #paper #Costco #sells #billion #gold #bars #monthly
