With precious metals now on sale at Costco, shoppers can grab eggs, milk, and gold bars in bulk, all under one roof.
In September of last year, the chain known for bulk groceries and inflation-proof hot dogs began selling gold bars on its website. The gold bars were a hit, with Costco selling $100 million worth, according to CNN.
Walmart followed suit and began selling precious metals, as well. As it turns out, consumers are happy to purchase bouillon from the same store where they buy bouyon, per CBS News.
Following Costco’s success with gold bars, the company is now venturing into the silver market. For $675, members can order 25-count 1 oz. Canada Maple Leaf Silver Coins. The coins, which are 99.99% pure silver, are non-refundable.
Like many items that come and go from Costco shelves, the gold bars saw a surge in demand. This is hardly surprising, given the retailer’s business strategy.
Costco is known for constantly shifting items around the store and is notorious for rapidly removing popular goods with no warning. This unpredictability can drive consumers to make rash purchases, fearing the item may not be around the next time they visit.
“We try to create an attitude that, if you see it, you ought to buy it because chances are it ain’t going to be there next time … That’s the treasure-hunt aspect. We constantly buy that stuff and intentionally run out of it from time to time,” the chain’s founder, James Sinegal, previously said, per CNN.
Costco may have entered the gold and silver investment market at an opportune time. Gold, for example, is nearly $2,200 an ounce, an almost 14% increase over the past 12 months. And while interest rates remain, the highest in over two decades, the Fed has signaled that cuts could start this year, a move that tends to buoy the value of assets like precious metals.
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