Costco makes its own gold.
The retail chain makes between $100 million and $200 million a month selling gold bullion, according to a research note from equity firm Wells Fargo. Last October, the company began selling one-ounce bars made of pure 24-karat gold for about $2,000.
“We view the addition of gold/silver as a smart move for Costco, as it only strengthens its value position,” the report said. “However, pricing at this level and shipping costs suggest it is a very low-profit business at best.”
The wholesaler priced its gold appropriately by selling about 2% above spot prices to members before a 2% cashback bonus for executive members and an additional 2% cashback for those with a Citi card, equity analysts said.
The mineral was responsible for nearly $100 million in sales between its debut and the end of the fiscal quarter ending November 26.
Costco also sells silver coins
The warehouse retailer committed to the metal market by recently selling silver coins. Coins are sold in tubes of 25 and are non-refundable.
The 1-ounce Canadian Maple Leaf silver coins were priced at about $680 before they went on sale online earlier this month.
Also for sale are coins with a maple leaf on the front and the silhouette of King Charles III on the back, which may be available for less at your local depot. Costco members can purchase a total of five tubes of coins.
Also available on the site: A 2024 Canadian Maple Leaf 1 oz 24 Karat Gold Coin Priced at $2,219.99.
The price of gold rises today by 0.87%
Costco's success with the metal comes with spot gold prices rising more than 13.70% since the beginning of 2024.
The price of gold was traded at $2,349.44 per troy ounce As of 9 a.m. ET on Monday, it is up 0.87% since Sunday.
The lowest trading price between the 24-hour period was $2,318.90 per ounce while the highest price was $2,365.35 per ounce.
Contribution: Mike Snyder, USA Today, Tony Dong and Fran Powell, planner
