The Costco shopping experience is now a worldwide phenomenon, with consumers now in a position to benefit from the wholesale chain’s bulk-shopping discounts and $1.50 hot dogs across the U.S. and in places like Taiwan, Japan and Australia.
The corporate continues to shake up that have, too. Not only does it manufacture lots of its own goods under the Kirkland Signature brand, but two years ago, it began selling gold bars. And for the reason that price of the valuable metal hit its all-time high in October 2024, demand for the product offering has remained strong amongst members.
Actually, Costco’s foray into precious metals has generated eye-popping results. The corporate is allegedly pulling in six figures in sales every month since its decision to start selling gold, demonstrating that members have taken to purchasing gold bars alongside rotisserie chickens and bulk toilet paper. In its 2025 first-quarter report, Costco listed gold amongst its top sales categories. But for investors seeking to gain exposure to the yellow metal, is that this one of the simplest ways?
Costco shoppers home in on gold buying
Throughout the summer of 2023, Costco made the move to begin selling one-ounce gold bars at its wholesale locations. The rollout has been so successful that in 2024, the corporate added silver coins and platinum bars to its offerings. But thus far, its gold bars have been the clear winner.
In a note to clients, Wells Fargo analysts said they expect revenue from Costco’s gold sales to fall between $100 million and $200 million monthly. The Swiss-made gold bars have repeatedly been selling out since they were first offered. Nevertheless, this does not imply the enterprise is profitable for Costco. The shop receives a low premium on gold purchases, and it offers money back to certain buyers who use bank cards, meaning gold sales should not contributing to any significant uptick in profits.
As for investors, now’s a superb time to own gold. The value of the valuable metal reached its all-time high of $2,781 per ounce last October. The principal drivers for gold’s current bull run are twofold. First, the surge in gold prices will be partially attributed to the Federal Reserve’s rate of interest policy. Gold historically has an inverse relationship with rates of interest, and with the Fed cutting rates throughout the second half of last 12 months, investors saw the valuable metal’s price surge.
The second factor that has been propelling gold prices is a mix of weak consumer confidence and lingering inflation. With headline inflation creeping as much as 2.9% in December, purchasing power continues to be eroded, which drives investors to hunt down safe-haven assets, of which gold is the frontrunner as a liquid store of value.
Is buying gold from Costco a superb idea?
Consumers can now hop of their cars and drive to the closest Costco location to buy gold. But is it a superb idea? It is a convenient option for those excited by investing in gold long run. But when investors decide to buy the valuable metal on the discount warehouse, there are pros and cons they need to pay attention to. Some incentives Costco offers may up the ante, but you’d be lacking the peace of mind afforded by buying gold in a brokerage account and holding it in a portfolio.
First, Costco gold buyers could have to pay a mark-up on their bars. Often known as the spread, the stores charge 2% above the present market rate. This isn’t abnormal, though. Online gold dealers also charge a diffusion for his or her non-wholesale transactions. Costco’s premium falls inside the industry range making it no worse a deal.
With the bonuses Costco offers on precious metal purchases, in truth, some buyers may effectively eliminate the premium. Those that buy their bars at the shop using Citigroup bank cards are eligible for two% money back on their purchase. Executive members at Costco can receive an additional 2% money back.
Then again, Costco doesn’t afford its members any opportunities to buy gold in bulk. When it has the metal in stock, buyers are limited to 5 bars per transaction. So, if investors wish to stockpile any significant quantity of the metal, they’ll have to undergo a precious metals dealer.
Buying gold at Costco also means experiencing the identical pitfalls as those that purchase the physical metal from online dealers. These drawbacks are avoided for investors who purchase gold on paper, though. Once gold is purchased at Costco, the patron is then answerable for its safekeeping. It’s a scenario not unlike stuffing money in a mattress, and it carries risk. To avoid that, the gold will be insured and stored in a vault, but these are additional expenses.
Conversely, paper gold investments — like owning shares of a gold ETF, which will be anchored by physical gold held in insured vaults — provide investors with that very same peace of mind without having to pay extra for it. These investments are also more liquid than physical gold, meaning they’re easier to purchase and sell since they’re listed on exchanges. Some gold ETFs even pay dividends, meaning they’ll play a task in a technique aimed toward generating passive income while also benefiting from the value strength of the underlying commodity.
All said, buying gold from Costco isn’t any worse than buying it from a dealer if you happen to don’t mind the acquisition limit. It may very well be higher than buying from a gold dealer in some instances, because you don’t have to worry about potential scams and salesmanship, and you’ll be able to earn as much as 4% money back. Nevertheless, there are still options to speculate in gold that provide greater safety, higher liquidity and fewer hassle than holding onto the bars yourself.
This story, originally published in April 2024, was updated in January 2025 to reflect current gold prices, inflation rates and Costco’s additional precious metal offerings.