Costco Selling Up To $200 Million In Gold Bars Per Month
According to $Wells Fargo(WFC)$ since August last year, the monthly gold sales of $Costco(COST)$ may range between 100 to 200 million US dollars.
Our work indicates that due to Costco's aggressive pricing and high customer trust, there has been a strong market interest in Costco. CNBC reported: The accelerated frequency of Reddit posts, rapid sellout of online products, and strong monthly electronic communication sales for Costco indicate a sharp rise in momentum since its launch.
Costco sells one-ounce gold bars made of nearly pure 24K gold, with the product generally priced about 4% higher than the spot price.
Currently, the sale of Costco gold bars is limited to five bars per customer (originally two bars), and premium members can get a 2% rebate.
Such pricing levels and shipping costs indicate that this is at best a low-profit business.
Gold spot prices have risen significantly since the beginning of this year, with not only China and India's demand, the two major gold consumer powerhouses, increasing, but also in the context of persistent inflation, nearly $35 trillion in national debt, and investors' concerns about the deterioration of the 'US fiscal condition,' the year-over-year increase in US gold spot prices has exceeded 13%, with sales volume also increasing significantly.
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