Costco still selling gold bars like hotcakes as prices surge
blitzdude
Posts: 6,105 ✭✭✭✭✭
Brooke DiPalma and Brian Sozzi
Fri, Sep 27, 2024, 8:18 AM EDT3 min read
Costco (COST) is slinging a lot of gold bars as prices for the yellow metal continue to surge.
Sales of gold were up "double digits" in the most recent quarter, Costco CFO Gary Millerchip told analysts on its earnings call Thursday evening. Millerchip went on to add that gold was a "meaningful tailwind" to e-commerce sales in the quarter.
Costco began selling gold bars in the fall of 2023. Wells Fargo analysts have estimated Costco is selling $100 million to $200 million in gold bars each month.
The most recent gold performance led to a tongue-in-cheek moment as Costco's call was nearing its end.
Veteran Evercore ISI analyst Greg Melich asked executives, "Given the nonfood, the success there, ... I'm just curious, are there any plans to maybe bring Kirkland Signature into the gold bullion market?"
"No plans at this time," Costco CEO Ron Vachris said.
The gold rush at the warehouse club comes as futures for the metal hit (GC=F) record highs at $2,708.70 an ounce during Thursday's trading session. Year to date, gold is up 30%, with the Fed's decision to cut rates by a half percentage point last week giving it another boost.
Top gold stocks such as Freeport McMoRan (FCX) and Barrick Gold (GOLD) have gained a cool 22% and 18%, respectively, in 2024.
On its website, Costco sells its 1 oz gold bar for $2,679.99. You have to be a member to buy the bullion. It's also non-refundable, and there's a limit of five total units per membership.
It's likely that Costco's gold business will stay lucrative in the near term, pros suggest.
IDX CIO Ben McMillan told Yahoo Finance this week that after years of gold being "sleepy," it's now firing on all cylinders as investors look to de-risk their portfolios.
“Gold historically has been ... kind of associated with very risk-off, very flight to safety type trades like hard landing recessions," McMillan said.
Despite the hefty sales of gold, Costco's bread and butter is still hawking products like, well, bread and butter to cost-conscious shoppers.
Its fiscal fourth quarter same-store sales growth came in at 6.9%, compared to estimates of 6.4%. E-commerce sales jumped 19.5%, slightly lower than the 19.63% growth rate Wall Street was projecting.
Sales were powered by growth in appliances, food health and beauty aids, tires, toys, and gift cards, among other items.
"In total, we think strong comparable sales and membership growth, and solid member retention rates indicate the company’s value proposition continues to appeal, with strong share gains across most of the company’s businesses. We anticipate the recently enacted membership fee increase will be largely reinvested, further aiding sales, comp, and traffic growth over the next 12-18 months," Stifel analyst Mark Astrachan wrote in a client note.
Astrachan maintained a Buy rating on the stock. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Comments
I like the transparency in their reporting. Not like the "rumored, supposed or assumed" info unusually spread about.
Knowledge is the enemy of fear
There is news (not many actual journalist left) and there is opinion (lots of it available). Knowing the difference might help you.
Repetition of ignorance is ignorance raised to the power two.
A mirror might help you.
Knowledge is the enemy of fear
News, or opinion?
Repetition of ignorance is ignorance raised to the power two.
i don't like gold bars, just too many fake ones, i realize all the ones they are selling are real, you take a hit on them when it comes time to sell, would much rather have a graded pre-33 gold coin
Fact.
Knowledge is the enemy of fear
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yes
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sure
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no
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no
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no
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sure
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no
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no
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still no
My US Mint Commemorative Medal Set
Year to date, gold is up 30%
Top gold stocks such as Freeport McMoRan (FCX) and Barrick Gold (GOLD) have gained a cool 22% and 18%, respectively, in 2024.
@Goldminers : At what point will the miners be a better option than the metal itself?
I knew it would happen.
I think the miners remain a good investment already and just bought Barrick again on the latest dip. When they report next earnings will be great. GDX is a reasonable alternative to diversify with physical.
My US Mint Commemorative Medal Set
Costco is going to start selling platinum bars now. Hmmmmm.
I knew it would happen.
My preference would be GDXJ (junior miners ETF).
Repetition of ignorance is ignorance raised to the power two.
There will be some more takeovers and mergers, so GDXJ has some stocks in it worth a closer look.
My US Mint Commemorative Medal Set
Don't like gold bars, bought lots of their gold coins and silver bars, and and even more of their stock.
Just returned from there and it was packed.
Repetition of ignorance is ignorance raised to the power two.
BOOMIN!™
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Crowd was so large in Costco today it took me longer to find my way out than it does at Ikea!
Repetition of ignorance is ignorance raised to the power two.
Dang lousy economy.
Just finished annual 2500 mile trip along East Coast. Never seen so many trucks.
Economy sucks. Lol
Knowledge is the enemy of fear
smaller trucking companies have been filing chap 7
how was the line at the rotisserie chicken counter?
Costco is good
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
Christmas shopping usually provides temporary relief for an ailing economy.
Repetition of ignorance is ignorance raised to the power two.
Our local Costco up here in the commonweath has been jam packed for the last several years. The stock certainly reflects that. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Retailers that offer discounts will always be busy, but not as much as during the holidays. The more shoppers that seek discounts indicates wallet tightening and thus a weakening economy. PS, Walmart was also a good "buy."
Repetition of ignorance is ignorance raised to the power two.
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That's why I am comparing the same time frame. Been making this same trip every year for the last 5 years. Lots more trucks on the road this year than last.
And the drivers in general seem to be a bit worse....maybe less experienced? New hires?
Maybe those trucks are just hauling gold to Costco?
Ailing economy?.....i guess that's why we hits record numbers of air travellers. Lol
https://thepointsguy.com/news/busiest-day-ever-us-airports/
Knowledge is the enemy of fear
simple answer, fly now, pay later (or maybe never). More credit card debt. Won't end well for many and as a whole it will affect us all.
Repetition of ignorance is ignorance raised to the power two.
Folk always have credit card debt. Always. Is the aggregate amount higher now than ever. Absolutely. Is deposable income higher now then ever. Absolutely. Is household debt service at all-time highs---NOT EVEN CLOSE.
Knowledge is the enemy of fear
And how did increasing the money supply more than 600% since 2008 affect the FED's data? Note all of the 2000 spikes are a result of COVID. You forgot an important piece of the formula:
Repetition of ignorance is ignorance raised to the power two.
Your chart shows folk still saving money. Cant be savin' if they all broke.
Knowledge is the enemy of fear
checkout my last post saying "Note all of the 2000 spikes are a result of COVID."?
Repetition of ignorance is ignorance raised to the power two.
You mean the last 2 administrations and Congress handing out free money to everyone? The chart shows big spikes in savings due to the handouts and nothing to spend it on due to supply chain disruptions. The savings rate now is just a little below the rate of the last 25 years.
BTW--money supply is up about 190% since 2008.
If we were to disrupt the supply chain again, maybe via 100% tariffs, the savings rate would then go up, but would we then say the economy is strong?
Knowledge is the enemy of fear
costco selling fed data now?
Apparently they sell stocks.
Knowledge is the enemy of fear
It’s cool that Costco is still selling so many gold bars! With gold prices going up, it makes sense that people are buying them fast. Their membership system and limited supply probably make them more popular. It would be funny if they made a Kirkland Signature gold bar someday!
I wonder how many new stackers are a result of Costco's PM availability or are these just veteran stackers taking advantage of decent pricing.
Repetition of ignorance is ignorance raised to the power two.