What’s really going on with the gold price?
Gold has recently reached its peak as geopolitical tensions have driven investors to traditional, safe play. Merryn Somerset Webb explains what’s going on and where things can go from here.
Bloomberg – Politics
Gold has become such a hot item, so Costco seems to be limiting how much its members can buy.
Warehouse retailers began selling 24 carat gold bars to their members in 2023. Currently, that limit, as previously reported by Business Insider, is changed to one per transaction, and up to two bars every 24 hours, as seen on the retailer’s website.
A price tag for a 1 ounce gold bar made in South Africa? $3,279.99 was much higher than the $2,000 it had done 19 months ago, shortly after Costco began selling. However, since gold prices have risen by more than 70% in the meantime, it is understandable that price rise. This reached a record high in April.
Another listing will limit members to one item per transaction, with 1 ounce Gold Bar Pumps for Swiss Fortuna Veriscan Ladies falling from the 24-hour limit of 5 items per transaction, limiting members to one item per transaction, limiting up to two items per 24 hours. According to an archived snapshot in the list, there were two purchase caps per membership in September 2023.
Retailers also have restrictions on other precious metals, including:
- 1 oz of American Eagle Gold Coin ($3,329.99, 1 per transaction, 2 per 24 hours)
- 10 oz silver bar ($359.99, 1 per transaction, 10 per 24 hours)
One unlimited option is the small 5 gram gold bar with an 18 carat gold chain, priced at $1,149.99.
Costco did not respond to a request for comment from USA Today.
Costco: Consumers are still snapping gold sticks
Goldbar sold out constantly when it first became available online in 2023. “When loaded onto the site, they usually go away within a few hours, limiting two per member,” Richard Galanti, then finance director at Costco, told analysts during the company’s revenue call in September 2023, according to a transcript from the intelligence of the S&P Global Market.
Gary Millerchip’s Chief Financial Officer said that gold sales and other categories, including jewelry, rose double digits in the 24 weeks ending February 16th. The retailer also began selling Silver Canada coins in March 2024.
Costco can earn between $100 million and $200 million a month by selling Wells Fargo Equity Research, estimated in April 2024.
If gold prices remain high, the bar could remain popular purchases if prices rise by more than 1% on Thursday, May 15th and economic uncertainty continues.
“I know things are getting weird when moms started focusing on Gold Bars at Costco, like toilet paper in 2020,” excluded one social media user.
USA One TOD.
Mike Snyder is a reporter for the trending team at USA Today. You can follow him in the thread, send BlueSky, X with X and send him an email Bliss & @mikegsnider.bsky.social & @mikesnider &msnider@usatoday.com
What are you guys talking about? Sign up for our trending newsletter to get the latest news of the day
