Costco has experienced a surge in demand for one-ounce gold bars available for purchase on its website, with customers quickly buying them within hours, as reported by Business Insider.
Due to their popularity, Costco has implemented a limit of two gold bars per member, as revealed by Chief Financial Officer Richard Galanti during Costco’s fourth-quarter earnings call.
On Costco’s website, customers can find 24-carat gold bars from the Rand Refinery of South Africa priced at $1,949.99 and gold bars from Switzerland’s PAMP Suisse for $1,979.99.
As of Wednesday morning, U.S. gold futures were trading at $1,891.30 per ounce.
Costco ensures the secure delivery of these gold bars through UPS and mandates signatures upon receipt. The listings specify that these gold bars may not be returned or refunded.
Recent events, such as the unsealed federal indictment of Senator Bob Menendez of New Jersey, which alleged that he accepted bribes including gold bars, have sparked increased interest in gold. However, demand for gold had already been rising this year as individuals sought ways to safeguard their savings against inflation, as reported by CNN.
The collapse of several regional banks, starting with Silicon Valley Bank, which catered to venture capitalists, further fueled interest in gold. According to Jonathan Rose, CEO of Genesis Gold Group in Beverly Hills, Calif., this situation instilled fear in many people, causing them to question the safety of their money within the banking system.
The debt ceiling negotiations in the United States have also contributed to the growing demand for gold, as highlighted in an August report from the World Gold Council. The report revealed that purchases of gold bars and coins in the U.S. reached a 13-year high during the second quarter.