Costco is making waves with online shoppers as it finds success in selling gold. During the first quarter, which ended on November 26th, the retail warehousing giant reported selling over $100 million worth of the precious metal. CFO Richard Galanti revealed this information during the company’s earnings call on Thursday.
The popularity of gold bars on Costco’s website has been notable, with the 1-ounce bars frequently selling out within hours of being loaded onto the site. In September, Galanti mentioned that the PAMP Suisse Lady Fortuna Veriscan series, one of Costco’s offerings, had become unavailable. Gold enthusiasts on Reddit have pointed out that prices for these bars exceeded $2,000 last week. However, due to purchasing limitations of two bars per membership, it may be challenging for customers to establish significant positions in gold through Costco.
Overall, customer satisfaction with their gold purchases from Costco appears to be high, as reflected in the impressive 4.9-star rating on the company’s website, accompanied by nearly 800 reviews. Some customers did express concerns about the higher state sales taxes imposed on their purchases.
It is worth noting that spot gold prices have experienced a 12% increase this year. JPMorgan’s commodities outlook, published earlier this month, predicts a significant rally for the precious metal in 2024. The bank forecasts a peak of $2,300 per ounce as it anticipates a decline in interest rates.
Source (CNBC)
