Last December, wholesale retailer Costco announced that they had sold over $100 million worth of gold in Q3 2023.
Now, Wells Fargo estimates that Costco “may now be running at” $100 million to $200 million per month in gold sales.
“Our work suggests there has been significant interest given COST’s aggressive pricing and high level of customer trust,” said analyst Edward Kelly in a Tuesday note to clients. “The accelerating frequency of Reddit posts, quick on-line sell-outs of product, and COST’s robust monthly eComm sales suggests a sharp uptick in momentum since the launch,” CNBC reports.
Costco is selling one-ounce bars made of nearly pure 24-karat gold. While the price is not disclosed online to nonmembers, it’s estimated that the product generally sells for about 2% above the spot price, which as of Tuesday morning was around $2,357 an ounce. That would put the price at Costco just over $2,400.
Sales of Costco gold bars are now limited to five per customer (up from two), while executive members receive 2% back. Those who use their Citigroup credit cards will receive a further 2%.
“Pricing at that level and shipping costs suggests it’s a very low profit business at best,” wrote Kelly.
www.zerohedge.com/commodities/pamp-it-costco-selling-200-million-gold-bars-month-wells-fargo-says