2024-04-13 10:10:00
Click to see a larger image. Gold bars are selling like hot cakes at Costco. Costco homepage capture
There was news that gold bars were selling like hot cakes at Costco, a large retail store in the United States. According to global investment bank Wells Fargo, Costco’s gold bar sales amount to $200 million (regarding KRW 275.8 billion) every month.
On the 11th (local time), the New York Times reported this news in an article titled ‘Customers flock to Costco to buy gold bars.’
The New York Times reported, “Costco has been selling gold bars as well as groceries such as $1.50 hot dog and soda sets and mayonnaise since October of last year.”
The gold bar sold by Costco is 1 ounce (28.349523 g) and 24 carats. Karat is a unit that represents the pure gold content of a gold bar, and 24 carats means 99.9% pure gold content. Currently, gold bars can only be purchased by Costco members. Previously, the Wall Street Journal (WSJ) reported that Costco customers were purchasing gold bars for regarding $2,000 (regarding 2.73 million won) each.
In a Costco earnings call last September, Costco Chief Financial Officer Richard Galanti said, “We sold out of gold bars within hours of starting to sell them online.”
The New York Times cited high inflation and geopolitical concerns in the United States as reasons why gold bars are gaining great popularity. The steady increase in gold holdings by central banks in various countries, including China and India, is also believed to have had an impact on the rise in gold prices.
Another popular factor is that it is convenient to buy gold at Costco, which is familiar to many people. “Costco gives people convenience,” said Sadiq S. Adatia, chief investment officer at BMO Capital. “Unlike opening an account and buying gold stocks, people can physically go into Costco and pick up gold bars.” said.
However, in response to this phenomenon, the U.S. Commodity Futures Trading Commission urged people to be careful when purchasing gold because the price volatility of precious metals is very high. The Commodity Futures Trading Commission explained, “Like other products, the price of precious metals rises when demand increases,” and “Generally, those who benefit from precious metals are sellers.”
Reporter Kwak Seon-mi
1713051320
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