Costco shoppers now have the unique opportunity to purchase a $1.50 hot dog alongside a $2,200 bar of gold, and this unconventional combination is gaining popularity.
The retail giant, which introduced gold bars to its inventory last year, has seen a surge in sales, with $100 million worth of gold bars sold in 2023 alone. Additionally, Costco now offers silver bars, which have also seen high demand and quickly sell out, both in-store and online.
Various factors such as inflation, the COVID-19 pandemic, geopolitical tensions, the soaring U.S. national debt, and concerns about the dollar’s depreciation have contributed to the growing interest in gold, even among Millennials.
Surprisingly, a significant portion of Millennials, about 17%, now own gold, according to State Street, while Gen X and Boomers allocate 10% of their portfolio to gold.
Julia Edwards, 29, and her fiancé Craig Beauregard, 33, recently purchased a bar of gold at Costco on a whim, priced at $2,069. They viewed it as an auspicious keepsake ahead of their upcoming wedding in June.
Another example is Joe Roselli, who acquired two $1,959 gold bars as a hedge against a potential economic collapse. Roselli emphasized the appeal of physical gold as a tangible asset in uncertain times.
Although gold historically performs well during economic downturns, it saw a 13% increase in futures trading in 2023, despite the U.S. economy’s resilience and a slowdown in inflation. Financial advisers caution against overexposure to gold in investment portfolios, as its performance may lag behind other assets like stocks over the long term.
In 2024, gold prices reached record highs, surpassing $2,300 per ounce, driven by expectations of lower U.S. interest rates. Jonathan Rose, CEO of Genesis Gold, attributed the increased demand for gold to concerns about inflation and the U.S. national debt, which has soared to $43,000 per citizen.
Rose also highlighted geopolitical factors such as the rise of the BRICS nations (Brazil, Russia, India, China, and South Africa), which are exploring alternatives to the U.S. dollar for international trade settlements.
Investing in physical gold bars offers investors a safe and liquid asset, according to Rose. Costco sources its gold bars from reputable refiners and ships them securely to customers’ homes, making them easily accessible and tradable.
Jared Nagano, a 31-year-old from San Francisco, expressed his trust in Costco and praised the affordability of its gold bars, indicating a growing trend of “gold bugs” among Millennials.
Costco’s venture into selling gold bars reflects changing consumer preferences and the increasing appeal of alternative investments in uncertain economic times.
