Demand for small gold bars at Costco: disappearing in hours
Costco Wholesale Corp. surprised its customers and investors by announcing the sale of one ounce gold bars. The company's CFO, Richard Galanti, shared the news during a quarterly earnings call.
Gold has traditionally been viewed as a safe investment and a hedge against inflation. Demand for it remains strong, partly due to concerns about economic slowdown and central bank purchases. This has contributed to a rise in the price of the precious metal.
Costco quickly sells out of gold bars when they appear on its website. To meet demand, the company limits the number of bars available to each member. It allows only two bars to be purchased for each member.
Despite the sudden offering of gold bullion bars, Costco has not provided details on the price of the bars or what types of bars it sells. At the time of the latest data, bullion was priced at $1,979.99 per ounce.
This unusual offering by Costco adds another unexpected element to its product lineup. The company is already known for its variety of merchandise, including boxes, caviar and even six-pound tubes of Nutella. Costco's retail mix remains attractive to shoppers. The company's quarterly results released Tuesday also beat analysts' expectations.
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