COSTCO has introduced purchase limits on its wildly popular one-ounce gold bars.
Surging demand for the precious commodity has led to rapid sellouts amid economic uncertainty.
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The wholesale retailer’s 24-karat gold bars have gone viral, often disappearing from inventory just hours after restocking.
Originally launched in 2023, the gold bars – priced around $1,950 to $1,980 – come in options like the PAMP Suisse Lady Fortuna Veriscan and the Rand Refinery’s South African bullion.
Despite the high price tag, customers have been rushing to buy them, hoping that the bars will be a hedge against economic instability.
Costco’s website now restricts members to buying just two gold bars per 24-hour period.
“Purchase limit of 2,” reads a notice under the new 1-ounce .9999 Gold Bullion listing.
“This item is non-refundable and non-returnable.”
MEMBER REACTIONS
Reddit users on the Costco subreddit quickly noticed the change and shared their opinions on the gold-buying craze.
“Best investment [right now],” one user commented.
“I saw it on the news that Americans are buying gold to safeguard savings from the current chaos,” said another.
“Once it hits the news it becomes a bad idea to jump in on the trend as a buyer.”
“If it gets to the point where the dollar is worthless, we got a lot of other stuff to worry about besides money,” another added.
SELLING FAST
According to a Bloomberg survey, roughly 77% of Costco stores across 46 states sold out of gold bars within a week in October 2024.
Analysts from Wells Fargo estimate Costco’s bullion sales are generating between $100 million and $200 million per month.
The panic-buying of gold reflects a broader trend as consumers seek tangible assets in an unstable financial climate.
Not everyone is convinced that it’s a smart investment, however.
The Commodity Futures Trading Commission (CFTC) recently warned that precious metals, including gold, can be volatile and aren’t always safe bets.
The agency stressed the importance of doing thorough research before buying.
Still, the hype around Costco’s gold shows no signs of slowing.
The company has leaned into the trend, expanding its precious metals offerings to include silver coins and one-ounce platinum bars.
For now, the purchase limit is Costco’s way of balancing high demand with inventory control.