Gold’s remarkable ascent to record highs this year has not deterred consumers from flocking to Costco Wholesale Corp. (COST) for their bullion purchases. The warehouse retailer’s competitive pricing and convenient shopping experience are making gold more accessible to the average buyer, further enhanced by the allure of gold as a safe-haven investment and a hedge against inflation.
Sourav Sethia, a 33-year-old analytics engineer from New Jersey, shared his enthusiasm for the experience. “It’s a great experience overall,” he noted. “I receive calls from Costco whenever new gold bars arrive because I’m a previous buyer. So whenever I see the price has pulled back, I rush to Costco to buy one.” On September 28, Sethia visited his local Costco, which was promoting one-ounce gold bars in celebration of the Indian festival Diwali. A store greeter was directing customers to a glass case showcasing the gold bars, prominently priced at $2,699.99. While Sethia did not make a purchase on this visit, he had bought two bars in the last four months as a safeguard against inflation.
This trend underscores a broader movement of shoppers turning to Costco for gold, even as prices for the precious metal reach unprecedented heights. Although Costco does not disclose specific sales figures for gold, a recent Bloomberg survey highlighted the challenges the retailer faces in keeping its gold inventory stocked. In the first week of October, approximately 77% of surveyed Costco locations with bullion bars were sold out, based on calls made to 101 stores across 46 states—all of which had recently received new stock of gold products.
The price of spot gold has surged nearly 30% this year, consistently reaching record highs. This dramatic rally has made gold one of the best-performing commodities, outpacing US equities and bonds. The rise has been fueled by gold’s reputation as a safe-haven asset amid geopolitical and economic uncertainty, as well as its role in diversifying portfolios to protect wealth. Last month, gold prices surpassed $2,600 an ounce, bolstered by the Federal Reserve’s pivot toward interest rate cuts, which typically benefits non-yielding assets like gold.
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