(TheIndependentStar.com) – One of the largest retailers in the world and one of Americans’ preferred retailers, Costco has been selling gold since last year and it has become quite a lucrative venture for the store.
Analysts at Wells Fargo anticipated that sales had been so face-paced that they expect revenue “may now be running at” a staggering $100 million to $200 million each month, a swift escalation since gold was introduced to the warehouse club in the latter part of 2023.
Edward Kelly, an equity analyst at the bank, noted in a client memo, “Our work suggests there has been significant interest given COST’s aggressive pricing and high level of customer trust.”
He continued, “[The accelerating frequency of Reddit posts, quick on-line sell-outs of product, and COST’s robust monthly eComm sales suggests a sharp uptick in momentum since the launch.”
If Kelly’s assessment is true, it would mark a significant leap for a product that only entered the market last August. During Costco’s fiscal first quarter, which ended in late November 2023 the product generated approximately $100 million in sales.
Costco offers 1-ounce bars crafted from nearly pure 24-karat gold.
Although the price is not disclosed to non-members online, it is estimated that the product typically sells for about 2 % above the spot price, which stood at around $2,357 an ounce.
In addition, this precious and demanded metal has experienced a notable surge this year, with spot prices climbing more than 13 % in 2024. This rise is attributed to persistent inflation since 2022 and investor apprehension regarding the deteriorating U.S. fiscal condition.
The government is projected to face a $2 trillion deficit this year, which contributes to a total debt exceeding $34.6 trillion.
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