Costco now sells gold bars, and customers are buying them fast

Costco now sells gold bars, and customers are buying them fast
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(NEW YORK) — Costco, the wholesale retailer that offers everything from PlayStations to pizza slices, is now selling gold bars.

Even more, the precious metal is flying off the shelves, a company executive says.

The company’s website says the price of the one-ounce bars of 24-karat gold can only be viewed by Costco members, who pay between $60 and $120 per year for a subscription. Each member is limited to purchasing no more than two bars.

An ABC News employee who is a Costco member was offered a purchase price of $1,929.99 on Wednesday morning. However, when attempting to move forward with the purchase, they received an error message saying, “Product Not Available!” The company’s website also indicated that the product was unavailable in multiple states.

On an earnings call last week, Costco Executive Vice President and Chief Financial Officer Richard Gallanti said the gold bars have been a hit with customers.

“When we load them on the site, they’re typically gone within a few hours,” Gallanti said.

An index for the price of gold has risen about 5% since a year ago, but has fallen from a peak reached in May.

Typically, traders treat gold as a safe-haven investment if they’re seeking a stable store of value that can withstand market turmoil.

In recent months, resilient economic performance has elicited a surge of optimism about the possibility that the U.S. can reduce inflation without falling into a recession.

In July, Federal Reserve Chair Jerome Powell said the central bank’s staff had abandoned its forecast of a downturn. In other words, staff at the Fed now expect the central bank to achieve a “soft landing.”

Still, the economy faces other looming threats, such as a spike in crude oil prices and an ongoing strike among autoworkers.

Costco members may want to consider carefully before purchasing a gold bar. The company’s website notes that the item is non-refundable.

ABC News’ Mary Kekatos contributed to this story.

 

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