Costco, the retail giant, disclosed that it achieved sales exceeding $100 million in gold bars during the first fiscal quarter of 2024, as reported by CNBC. This announcement took place within the company’s earnings call, where it revealed a 6.1% surge in sales compared to the first quarter of 2023 and declared a special dividend of $15 per share.
The one-ounce gold bars, specifically the PAMP Suisse Lady Fortuna Veriscan and Rand Refinery bars made of 24-karat gold, are offered for sale on Costco’s website at $2,069.99 each. These bars are accessible online exclusively to Costco members, with a limit of two bars per person. The product, which is non-refundable, is shipped to customers via UPS. According to the product descriptions, the bars are brand new, accompanied by certificates of authenticity and proof of lab analysis.
Gold prices have exhibited volatility in 2023, dipping below $1,900 in both February and September but surpassing the $2,000 mark six times. As of Friday afternoon, the current price stands at $2,018.19. Over the past five years, the precious metal has seen a rise in value, climbing from a spot price of approximately $1,200 an ounce in 2019.
Market factors influencing gold prices include supply and demand, interest rates, market volatility, and potential risk to investors, according to investing website Investopedia. Although research indicates that gold doesn’t directly correlate with inflation, some experts, such as Jonathan Rose, co-founder of Genesis Gold Group, suggest that people are turning to gold for stability in an economy marked by inflation, a challenging real estate market, and a growing distrust of financial institutions. Rose emphasized that gold and silver serve as tangible assets providing a safe haven amid market uncertainty, contributing to the appeal of ownership for those seeking self-sufficiency.