NEW YORK – Gold’s breathtaking surge in 2024 to repeated record highs has not stopped bullion from flying off shelves at Costco stores across the US.
Costco’s one-stop shopping convenience is taking gold buying to the masses by offering prices that undercut traditional precious metals dealers and extra rewards for its most loyal customers. Add to that gold’s appeal as a safe haven and hedge against inflation, and it is easy to see why bullion buyers are turning to the warehouse retailer.
“It’s a great experience overall,” said Mr Sourav Sethia, a 33-year-old analytics engineer from New Jersey. “I get calls from Costco whenever gold bars arrive as I am a previous buyer. So whenever I see the price has pulled back, I rush to Costco to buy one.”
Mr Sethia visited his local Costco with his parents on Sept 28 while the store was promoting one ounce gold bars stamped to mark the Indian festival Diwali, also known as Deepavali.
A Costco greeter clutching a laminated paper sheet advertising the item was directing shoppers to the centre of the store, where the gold is displayed in a glass case. A small sign showed the price – US$2,699.99 (S$3,520). While Mr Sethia did not buy it this time, he did purchase two bars at this location in the past four months to guard against inflation.
Mr Sethia’s experience is reflective of a larger trend that is driving shoppers to seek out gold at the big-box store even as prices of the precious metal hit all-time highs.
While the retailer does not disclose much about its gold sales, a Bloomberg survey revealed how hard it is for the company to keep shelves stocked with the precious metal. About 77 per cent of surveyed Costco outlets that stock bullion bars were sold out
