Families looking to buy huge packs of toilet paper and cheap hot dogs at Costco can now pose as old-time prospectors because the retailer has gold in reserve, which is soaring from its digital shelves…to the tune of potentially hundreds of millions.
The store known for selling everything in bulk is in the precious metals game these days…selling 1-ounce, 24-karat gold bars in its stores for around $2,400 apiece. This has been going on for about 6 months now, and at this point…it’s apparently a source of income.
Wells Fargo analysts reportedly told customers earlier this week that Costco could bring in $100 million to $200 million in gold sales each month. Wow!
Now, for those thinking about buying Costco’s entire gold supply, take a breath…because the warehouse giant has rules when it comes to buying gold.
This limits customers to just 5 gold bars per subscription. Of course, these things sell like hot cakes…and are snapped up on their website within hours every time they restock.
Quite funny, CNBCalso reports that the company isn’t making huge profits on gold… with cashback offers and shipping fees ruthlessly cutting into the bottom line. In other words, the great deals offered by Costco make gold bars a bargain…if you can get them, that is.
That said, the company purchased a gold tier of Fort Knox regardless…and might save it for a rainy day. Some economists suggest that selling gold is a smart business decision as more and more investors seem to be turning to assets like gold and more.
So grab your gold while you can…and grab some huge cans of tuna while you’re at it.