Move over Rotisserie Chickens, Costco's New Gold Bars Are the Talk of the Town
Costco's hottest item flies off the shelves within hours - the 1 oz PAMP Suisse Lady Fortuna Veriscan Gold Bar This 24-karat treasure, worth $2,000, is in such high demand that it consistently sells out on Costco's website, leaving eager buyers empty-handed
Do you want to add a $2,000 gold bar from Costco to your $4.99 rotisserie chicken purchase?
Costco is known for more than just selling toilet paper, office supplies, and food items. The company is highly successful and can sell out of expensive items like the 24-karat 1 oz. Gold Bar PAMP Suisse Lady Fortuna Veriscan within hours of being listed on their website, as confirmed by chief financial officer Richard Galanti.
The wholesale retailer started offering gold for sale on their website in September. As of Friday, 1 oz. gold bars were being sold for $2,069.99, with a limit of two bars per Costco membership. Costco's website states that the non-refundable gold comes in a sealed black assay card and is individually stamped with a unique serial number.
During the company's earnings call on Thursday, Galanti informed analysts that the company had sold over $100 million worth of gold bars in the last quarter.
Costco's gold sales have contributed to its ongoing success, with the company reporting strong profits during the pandemic in 2020. The rush of customers to load up on groceries and household staples led to a surge in first-time club memberships, resulting in record-high member rolls. As a result, Costco's shares have surged over 45% this year.
Gold prices soared to a new record high earlier this month, driven by investor anticipation of interest rate cuts, a weakened dollar, and geopolitical unrest. With the prospect of falling interest rates, demand for Treasuries decreases, making gold, which generates no interest, a more appealing option.
In the larger scope, gold has also been bolstered by a prevailing sense of worldwide uncertainty. Investors often view the metal as a safe haven due to its tangible and limited nature, theoretically holding its value. Nevertheless, selling physical gold can pose risks and be costly, presenting a challenge for investors.
CNNs Anna Cooban contributed to this report.
