Costco's top-selling item isn't just chicken buckets or toilet paper. You guessed it right, it's gold bars worth a whopping $2,000 each! That's right, Costco, the retail giant, is now selling 24-karat gold bars, and they're flying off the digital shelves faster than hotcakes.
Rich Galanti, the company's executive vice president and CFO, confirmed that the Lady Fortuna Veriscan-Gold bars from PAMP Suisse were listed as sold out on Costco's website this week. These gold bars usually sell out within hours of being posted online.
Costco started selling 1-ounce gold bars online in September, and they're currently available for $2,069.99 each, with a limit of two bars per Costco member. The gold, which comes in a sealed black certificate with a unique serial number, is delivered separately.
In the previous quarter, Costco reported selling gold bars worth over $100 million, according to Galanti. His remarks were made during the company's earnings call last Thursday.
Costco's golden streak is due to its strong earnings during the pandemic in 2020. With people flooding into stores to buy essential items and household goods, many new customers joined Costco, and their memberships remained active, boosting the company's membership numbers to record highs. Costco's shares have increased by over 45% this year.
At the beginning of the month, gold prices hit a record high, driven by expectations of lower interest rates, a weaker dollar, and geopolitical tensions. When interest rates are low, or expected to fall, as in this case, the demand for government bonds decreases, and gold, which does not pay interest, becomes a more attractive alternative.
In the long term, gold benefits from another factor: global instability. Investors often see gold as a safe haven because it's a tangible, scarce asset that theoretically maintains its value. However, selling physical gold can be risky and expensive.
CNN's Anna Cooban contributed to this report.
Enrichment Data:
Costco's gold sales have made a significant contribution to its revenue, although the exact percentage is not stated. Wells Fargo reported in April 2024 that Costco's gold bar sales were bringing in around $200 million per month. In its first-quarter report for 2025, Costco included gold among its top sales categories, further highlighting its popularity and revenue contribution.
The popularity of Costco's gold products can be attributed to several factors. First, purchasing gold from Costco is convenient as customers can buy it online or in-store without any formalities. Second, the familiarity of the Costco brand makes buying gold an attractive option for many investors. Third, the surge in gold prices has caught investors' attention, fueling interest in investing in gold. Fourth, during times of inflation and economic uncertainty, gold is often seen as a safe-haven asset, making it a popular choice among investors. Lastly, millennials are increasingly investing in gold, with 17% of their portfolios dedicated to the metal, compared to 10% for Gen X and baby boomers.
