In September, Costco announced it would start selling gold bars to its members. Lots of people were buyers.
When the membership club announced its earnings for its fiscal first quarter, which ended Nov. 26, the report showed that Costco had sold more than $100 million in gold.
Costco Chief Financial Officer Richard Galanti noted that gold doesn’t carry a huge profit margin, but with $100 million in sales, even a small profit adds up. Buyers are limited to two one-ounce bars per purchase.
On Friday the spot price of gold was $2,020.58 an ounce. Costco listed an ounce of gold for sale at $2069.99.
Interest has risen with inflation
The bars aren’t sold in stores but only on Costco’s website. Galani said in September that the bars quickly sell out once they are posted online.
Gold prices have risen in recent months as a hedge against inflation, as well as a safe haven from geopolitical turmoil in Ukraine and the Middle East. JPMorgan says the precious metal still has room to run and predicts it could reach $2,300 an ounce next year.
Investors should buy gold only from a reputable source. ConsumerAffairs researchers reviewed 25 gold dealers and selected the five best.
