Costco sold more than $100 million in gold bars last quarter

Costco has found a new hit with online shoppers — gold.

The retail warehousing giant sold more than $100 million of the precious metal in its first quarter, which ended Nov. 26, Costco CFO Richard Galanti told analysts during the company’s earnings call Thursday.

The 1-ounce bars typically sellout within a few hours after they are loaded to Costco’s website, Galanti said back in September. The PAMP Suisse Lady Fortuna Veriscan series appeared to be unavailable Friday.

Gold enthusiasts on Reddit said the bars were going for slightly more than $2,000 as recently as last week. Customers are limited to two bars per Costco membership, which would make it difficult to build a real position in the precious metal.

Members generally seemed satisfied with their purchase though, with a 4.9 star rating on Costco’s website with nearly 800 reviews. Some customers did complain about stiff state sales taxes.

Spot gold prices have jumped about 12% this year. JPMorgan is forecasting a breakout rally for the precious metal in 2024 with a peak of $2,300 an ounce as interest rates are expected to fall, according to the bank’s commodities outlook published earlier this month.

The investment bank said gold could retreat to $1,900 an ounce in the coming months, but that would set investors up to position themselves for the midyear rally.

Gold is on pace for a weekly gain on a weaker U.S. dollar and lower Treasury yields after the Federal Reserve on Wednesday signaled three rate cuts are in store for 2024. The precious metal was trading at $2,036.19 an ounce Friday morning.

One important note on Costco’s gold bars: They are non-refundable.