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IPFS News Link • Gold and Silver

PAMP It: Costco Selling Up To $200 Million In Gold Bars Per Month, Wells Fargo Estimates

• https://www.zerohedge.com, by Tyler Durden

"You've probably read about the fact that we're selling one-ounce gold bars. We sold over $100 million of gold during the quarter," sad CFO Richard Galenti.

Now, Wells Fargo estimates that Costco "may now be running at" $100 million to $200 million per month in gold sales.

"Our work suggests there has been significant interest given COST's aggressive pricing and high level of customer trust," said analyst Edward Kelly in a Tuesday note to clients. "The accelerating frequency of Reddit posts, quick on-line sell-outs of product, and COST's robust monthly eComm sales suggests a sharp uptick in momentum since the launch,CNBC reports.

Costco is selling one-ounce bars made of nearly pure 24-karat gold. While the price is not disclosed online to nonmembers, it's estimated that the product generally sells for about 2% above the spot price, which as of Tuesday morning was around $2,357 an ounce. That would put the price at Costco just over $2,400.

Sales of Costco gold bars are now limited to five per customer (up from two), while executive members receive 2% back. Those who use their Citigroup credit cards will receive a further 2%.

"Pricing at that level and shipping costs suggests it's a very low profit business at best," wrote Kelly.

Spot prices for gold have notably been on a tear this year, rising over 13% YTD amid persistent inflation, nearly $35 trillion in national debt (and growing), and investor fears over the state of the 'deteriorating US fiscal situation,' according to the report.


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