From toilet paper to coffee, Costco is renowned for offering daily basics in large containers. But now it's moving closer to a category that includes gold, which some investors and survivalists consider vital.
The bargain retailer announced this week that it has begun selling 1-ounce bars of gold, but that despite a two-bar maximum per member, demand is so great that it is unable to keep them in stock, reported by CBS News.
The company is offering two different kinds of bars: a 1-ounce gold PAMP Suisse Lady Fortuna Veriscan bar stamped with an elephant motif and a silhouette of the goddess of luck holding a cornucopia.
The length of each bar is roughly half an inch. The Rand bars have their own serial numbers, however, the PAMP Suisse bars are registered and have a digital certificate that can be viewed with a QR code.
The pricing isn't officially indicated, but according to Yahoo Finance, the PAMP bar costs roughly $1,980, while the Rand bar costs about $1,950. Costco's online store lists the bars as unavailable as of Thursday morning.
Investors have always looked to gold as an inflation hedge and a source of financial security during choppy stock and bond markets. The price of gold has increased by 57 percent during the last five years, whereas the broad S&P 500 stock index has only increased by 47 percent in the same time.
The Costco bars are being sold for a little bit more than the spot price of gold, which was $1,875 an ounce on Thursday.
Customers are Liking It
Customers at Costco seem to like the product, and some have even commented on how much less expensive it was there than at other stores.
Other reviewers made the observation that purchasers with Costco executive memberships and credit cards can receive a combined 4 percent cash back on their gold purchases.
According to Jonathan Rose, co-founder of Genesis Gold Group, it's a successful offer that might appeal to a particular segment of Costco's consumer base.
In an era when concerns about the future are at an all-time high, Rose noted that the company appears to have hastened its offerings of dried foods and other survivalist goods. For instance, the business sells emergency food kits with 150 servings that would be useful, you know, just in case. Gold and that kind of good go well together.
Gold bar hoarding has gained attention recently in the wake of U.S. Senator Bob Menendez of New Jersey, who was raided for 81.5 ounces of gold after he was charged with federal bribery.
