American retailer and warehousing giant Costco is currently experiencing a major gold run after it began offering gold bars for sale at discounted prices. Costco recently added gold bars from PAMP Suisse and Rand Refinery to its list of discounted products, limiting purchases to only two per member.
Prices for the gold bars vary depending on the location, with Costco listing the gold bars at around $1,985.20 per ounce in Canada and $1,979 in the United States. In spite of the relatively high prices and limits on purchases, Costco reports that the gold bars are flying off the shelves. During a recent earnings call with investors, Costco CFO Richard Galanti said the retailer usually loads the gold bars on-site, and they typically sell out within a few hours.
According to the retailer’s website, Costco members in the U.S. can buy a one-ounce bar of gold from PAMP Suisse for $1,979 or a one-ounce Rand Refinery 24-karat gold bar for $1,949.99. Both types of gold are currently rated at 4.9 on Costco’s website and cannot be returned or refunded. The gold bars are only available to customers online, and Costco’s website also stresses that the gold is not eligible for any promotions or price adjustments.
Gold has always attracted plenty of interest during uncertain times because it retains its value during economic downturns, allowing investors to retain the value of their cash even as fiat currencies such as the dollar lose value. However, individuals buying up Costco’s gold likely won’t be able to buy enough of the precious metal to use it as a profitable investment vehicle due to the purchase limits placed by Costco.
Membership fees would also eat into any potential gains Costco members would make on the gold purchases, reducing the precious metal’s potential as an avenue for profit.
Some Reddit users said they were unable to obtain the high-demand gold while others noted that buyers with executive membership cards could earn 2% cash back after buying the Costco gold.
Genesis Gold Group cofounder Jonathan Rose says that even though the gold may present a viable profitable avenue for buyers, it acts as an effective promotion for Costco and appeals to a specific segment of the retailer’s customer base. Rose also stated that Costco seems to be building up its available stock of survivalist foods as the cost of living rises and Americans become more uncertain of the future.
This gold bar sale being conducted by Costco is likely to spur interest in the public to invest in gold, and gold extraction enterprises such as Eloro Resources Ltd. (TSX: ELO) (OTCQX: ELRRF) could see a spike in interest in their stock.
NOTE TO INVESTORS: The latest news and updates relating to Eloro Resources Ltd. (TSX: ELO) (OTCQX: ELRRF) are available in the company’s newsroom at http://ibn.fm/ELRRF
About MiningNewsWire
MiningNewsWire (“MNW”) is a specialized communications platform with a focus on developments and opportunities in the Global Mining and Resources sectors. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled recognition and brand awareness.
MNW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from MiningNewsWire, text “BigHole” to 844-397-5787 (U.S. Mobile Phones Only)
For more information, please visit https://www.MiningNewsWire.com
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
MiningNewsWire
Los Angeles, CA
www.MiningNewsWire.com
310.299.1717 Office
[email protected]
MiningNewsWire is powered by IBN