Costco is seizing its golden opportunity

If Costco didn’t already have street cred, now it’s solidified – it’s straight moving bricks by the ounce. According to a recent Wells Fargo estimate, the retailer is selling between $100 million and $200 million worth of gold bars per month.

This bit of info may not come as a surprise to anyone who’s tried to buy some. The 1-ounce bars, which are only available online with a limit of five per person, usually sell out within hours of being listed. Costco began selling them in late September, and generated $100 million in sales between then and late November, per the company’s latest quarterly earnings report.

Speaking of earnings… Costco’s approach to selling gold seems to be: “profit, schmofit.” The retailer sells the bars at 2% above the gold spot price – but it also offers 2% cash back for executive members and another 2% for those who use their Citigroup credit cards.

🪙 Zoom out: The value of gold has grown 14.5% since January – higher than any of the major indices on the New York Stock Exchange. And it’s accelerated in recent weeks. The spot price of gold was a record-high $2,160/ounce in early March, and was trading yesterday at ~$2,300/ounce.