Costco’s Gold Bars Reach Over $100 Million in Sales – Should You Buy?
Written by
Adam Palasciano, AI Editor
Edited by
Sean Fisher
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Costco, the retail giant, recently disclosed that it achieved sales exceeding $100 million in gold bars during the initial quarter of the fiscal year 2024. This news came during the company’s earnings call, where they reported a substantial 6.1% sales increase compared to the same quarter in 2023. To sweeten the deal, Costco declared a special dividend of $15 per share.
The gold bars, available exclusively to Costco members, are limited to two bars per person. Offered online, the one-ounce PAMP Suisse Lady Fortuna Veriscan and Rand Refinery bars boast 24-karat gold and are priced at $2,069.99 on Costco’s website. It’s noteworthy that this product is non-refundable, and UPS handles the secure shipment to customers. Described as brand new, the bars come complete with certificates of authenticity and proof of lab analysis.
Gold Sales Boost Costco Stock Prices
Costco’s stock (COST) experienced a remarkable surge, recently hitting a record high of $661.88. Over the past year, the wholesale giant’s market performance has been impressive, with a staggering 47% climb from its low of $447.90 per share on January 3, 2023.
Gold prices have been on a roller coaster throughout 2023, fluctuating below $1,900 in both February and September while surpassing the $2,000 threshold six times. Over the last five years, the precious metal has witnessed a steady increase, rising from a spot price of around $1,200 per ounce in 2019.
Factors Influencing Gold Prices
The price of gold is subject to various market factors, including supply and demand, interest rates, market volatility, and potential risks for investors. While gold’s correlation with inflation is debated, some experts, like Jonathan Rose, co-founder of Genesis Gold Group, believe that the current economic landscape, marked by inflation, a challenging real estate market, and growing distrust in financial institutions, drives people to seek stability.
Rose highlights that the market’s stability outlook isn’t promising, prompting individuals to invest in tangible assets like gold and silver as safe havens. Amid economic uncertainties, owning physical gold provides a sense of self-sufficiency, appealing to those seeking a reliable asset to weather a turbulent cash market. As Costco’s gold bars sales soar, the broader question arises — is investing in gold a prudent move in these uncertain times?
This article is based on information originally found in an article on CNBC.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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