Looking for something to add to your Costco Are there still 30 rolls of toilet paper in the car? How about a gold bar?
While the members-only warehouse chain isn’t your typical precious metal sales pipeline, its 1-ounce gold bars are selling faster than 170 ounces of discount laundry detergent.
in a company benefit Chief Financial Officer Richard Galanti said on a conference call last week that the online-only bars “typically disappear within a few hours” after appearing on Costco’s website. It added that each member can only purchase a maximum of two gold bars. As of Wednesday, they were still sold out.
Unlike other discount products from the retail giant, gold bars come at a premium price. No prices were listed Wednesday due to a shortage of gold bars, but multiple media outlets reported last week that 1-ounce gold bars (available in two designs) were selling for just under $2,000 each.
That’s slightly higher than the current gold market price, which was around $1,835 an ounce on Wednesday afternoon.
Costco did not specify how many gold bars it has sold recently or how often it is restocking. The Issaquah, Washington-based chain did not immediately respond to a request for comment from The Associated Press on Wednesday.
Chances are, interest in Costco gold bars isn’t going away anytime soon. While an ounce or two of gold won’t make a huge difference in portfolio diversification, experts note that investor demand for the precious metal has increased in recent years and is likely to continue.
Still, it’s important to pause and evaluate your investment prospects. Here’s what some experts have to say.
What is the reason behind the demand for gold?
Experts say interest in buying gold often stems from uncertainty.
Jonathan Rose, CEO of precious metals broker Genesis Gold Group, said that recently bank failure, inflation For example, personal concerns about the U.S. dollar may cause some people to start looking for other places to park their funds.
“If someone is out buying gold, it means they believe there is some type of instability at the structural level in the market and/or the government itself,” added David Wagner III, head of markets and equities at Aptus Capital Advisors.
Is gold worth investing in?
Ross and others say gold can diversify and balance your portfolio and mitigate potential future risks.
“People are looking for safe havens … to protect their wealth. Gold ticks all those boxes,” Ross said. He added that people may see the value in owning something tangible and put precious metals “in a safe or a retirement plan, or even like an IRA or 401k… to protect when they see what’s happening in the market.” What they have.”
But not everyone agrees. Gold is “one of the worst things you can own,” Wagner said.He believes that one of the disadvantages of gold is that it is not an inflation hedge as many people claim it is because inflation sometimes It has grown faster than gold in recent decades and “there are more effective ways to protect against capital losses,” such as investing in derivatives.
Commodity Futures Trading Commission also warned People are cautious about investing in gold. The committee said precious metals can be highly volatile, with prices rising as demand increases, meaning “when economic anxiety or instability is high, the people who typically profit from precious metals are the sellers.”
The committee and others added that if you do choose to invest in gold, it’s important to educate yourself on safe trading practices and be wary of potential scams and fakes in the market.
Gold for December delivery Down $6.70 to $1,834.80 an ounce Wednesday’s close. In other precious metals, silver for December delivery fell 23 cents to $21.15 an ounce, and copper for December delivery fell 3 cents to $3.59 a pound.
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