Precious Metals

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>>> Costco's Gold Bars Are Selling Out 'Within A Few Hours'— Here Are 3 Other Ways To Invest In The Yellow Metal


Benzinga

by Jing Pan

Oct 12, 2023


https://finance.yahoo.com/news/costcos-gold-bars-selling-within-152139775.html


Everyone knows you can leave Costco Wholesale with a cart brimming with oversized tubs of peanut butter, a TV larger than your living room wall and enough toilet paper to last a decade. But did you know that the warehouse chain sells gold bars, too?

Costco has started selling 1-ounce gold bars. You can choose from two variations: a 1-ounce gold PAMP Suisse Lady Fortuna Veriscan bar and a 1-ounce gold bar from Rand Refinery.

Both types are available online only and are limited to two per member. They are nonrefundable.

Given that gold bars aren't really a typical grocery list item, you might think that they'd linger unnoticed on Costco's website. But demand has been surprisingly strong.

During Costco's latest earnings conference call, Chief Financial Officer Richard Galanti said, "I've gotten a couple of calls that people have seen online that we've been selling gold — 1-ounce gold bars. Yes, but when we load them on the site, they're typically gone within a few hours, and we limit two per member."

Costco's website indicates that both bars are out of stock as of Oct. 10.

Why Do People Hoard Gold?

People own gold for various reasons — the yellow metal has served as a store of value for thousands of years.

Unlike fiat money, which can be produced in unlimited quantities by central banks, the precious metal has inherent scarcity, making it a hedge against inflation.

At the same time, gold historically has been recognized as a safe-haven asset, providing investors with a hedge against economic uncertainty and geopolitical risks. In times of political unrest, wars and other crises, the yellow metal has often been sought as a refuge, given its global recognition and value.

These days, there are plenty of ways to gain access to the metal — and you don't have to be a member at Costco to do it.

Investing In Gold

The most direct way to own gold is by purchasing physical bullion. While Costco's gold bars might be out of stock — and sell out quickly when they are in stock — there are other reputable online dealers and platforms where you can readily acquire the precious metal. Your local bullion shop may also carry various gold coins and bars.

Second, rather than owning the metal directly, you can also invest in companies that mine it. By buying shares in gold mining companies, you're essentially placing a bet on the company's ability to profitably mine and sell gold. This method introduces the complexities of stock investing, such as assessing a company's management, mining costs and overall financial health. While this method could be more volatile than direct gold ownership, it offers the opportunity for potential dividends and capital appreciation.

In addition, investors can also invest in exchange-traded funds (ETFs) that specialize in gold. These funds track the price of gold and trade on stock exchanges so it's easy to buy and sell them. If you want to get gold exposure in your portfolio without worrying about storage or authenticity, gold ETFs deserve a serious look. However, it's essential to be aware of any associated fees or expenses, which can eat into potential returns.

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