A sudden rush in demand for gold is reportedly forcing retail giant Costco (COST) to put restrictions on how much customers can buy at a time.
Costco’s 24-karat gold bars, which debuted in June of 2023, have seen historic demand amid all-time high prices and inflation concerns, reports Bloomberg.
A survey from Bloomberg estimated that about 77% of Costco locations across the US that sell bullion bars were out of stock by the first week of October 2024, even after receiving fresh stocks in the previous weeks. Since then, the price of gold has gone much higher, currently trading at $3,248 after hitting an all-time high of $3,500.
Now, Costco’s checkout page for its gold bars states,
“Limit of one Transaction Per Membership, with a Maximum of two Units Per 24 Hours.”
In April of last year, banking giant Wells Fargo estimated that Costco was seeing as much as $200 million per month in revenue from its gold bar sales alone.
Said Wells Fargo equity analyst Edward Kelly at the time,
“Our work suggests there has been significant interest given COST’s aggressive pricing and high level of customer trust… The accelerating frequency of Reddit posts, quick on-line sell-outs of product, and COST’s robust monthly eComm sales suggest a sharp uptick in momentum since the launch.”
In addition to gold, Costco is also selling silver and platinum bars to its customers.
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