First, Costco sold gold bars to members who were looking to invest in more than bulk household purchases.Now sold by warehouse retailers silver cointoo.
Costco began selling one-ounce 24-karat gold bars in October 2023 for about $2,000, but members could purchase up to two. Costco was inundated with sales of more than $100 million worth of gold bars in the three months ending November 26, 2023.
“When we put an item on our site, it typically disappears within a few hours, and we limit it to two items per member,” Richard Galanti, Costco’s chief financial officer, told investors. Told. CNBC reported at the time.
The same trend is happening with the silver coins that Costco recently started selling. Galanti told CNN.. Sold in tubes of 25, a 1 oz silver Canadian Maple Leaf coin costs approximately $680. However, it is sold out online.
Is there good news for those participating in the coin market? The coin, which features a maple leaf on the obverse and a silhouette of Charles III on the reverse, may be available at local warehouses at a low price, according to Costco’s website. Members can purchase up to 5 tube coins. Non-refundable.
This site also includes: 2024 1 oz Canadian Maple Leaf 24 carat gold coin Price is $2,219.99.
On the company’s earnings call Thursday, Galanti told analysts that e-commerce sales growth in the quarter that ended Feb. 18 was “driven by sales of gold and, most recently, silver.”
Walmart, Costco, Target:Retailers experimenting with the use of self-checkout and DIY processes.
Why do Costco shoppers buy gold bars and silver coins?
Gold and silver values are expected to continue rising in 2024 on expectations that the US Federal Reserve will start cutting interest rates.
“We expect gold prices to rise as a result of Fed easing. This will also be accompanied by a weaker dollar,” said Joni Teves, precious metals strategist at investment bank UBS. told CNBC. At the time, Tews said he expected gold prices to reach $2,200 an ounce by the end of the year.
Gold closed Friday at $2,178.60, up more than 5% year-to-date, and silver rose 2% to close at $24.35 an ounce.
“Silver is significantly underperforming gold. So I think there’s a lot of catching up to do and this move could be very dramatic,” Taves told CNBC.
Costco stock falls from record price.There is no increase in membership fees yet.
The company’s stock fell 7.6% on Friday after hitting a record high on Thursday. The retailer’s results for the past quarter beat expectations on many measures, but revenue fell just short of expectations.
Investors may have been hoping Costco would raise membership prices, but Costco hasn’t raised prices since June 2017. “At some point we will,” Galanti said. Galanti will step down on March 15, and will be replaced by former Kroger CFO Gary Millerchip. , The Wall Street Journal reported. “I joked with Gary that it would be under his watch, not mine.”
Contributors: Jessica Guynn, James Powel, Mary Walrath-Holdridge.
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