COSTCO’S gold bars are flying off the shelves after the wholesale retailer recently restocked the precious metal.
A majority of stores in 46 states sold out of the one-ounce bars just a week after Costco restocked, according to a recent survey.
Costco has sold out of their gold bars after just recently restocking (stock image)[/caption]
The one-ounce gold bar is sold on Costco’s website[/caption]
The gold bars have stayed popular since they sold out in a few hours when they first went on sale last year.
Around 77% of Costco stores in 46 states sold out of the $2,699.99 bars in the first week after restocking, according to a survey by Bloomberg.
Costco has since released silver coins and platinum bars as part of their precious metals lineup while doomsday preppers rush to get their hands on the items, which could serve as bartering tools at the end of the world.
However, the Commodity Futures Trading Commission warned that gold isn’t a “safe” investment.
“Like other commodities, precious metal prices rise as demand goes up, so when economic anxiety or instability is high, the people who typically profit from precious metals are the sellers,” the CFTC said in an advisory.
“The truth is gold and other precious metals are highly volatile and past performance is not a good predictor of future returns.
“If sales pitches also include a lot of doom-and-gloom or high-pressure sales tactics, they could be setting you up for fraud.”
Worries of fraud haven’t stopped Costco customers, who topped a $100 million profit in the retailer’s first fiscal quarter with gold bar sales.
In April, Wells Fargo estimated that Costco sold up to $200 million per month in precious metals.
David Wagner III, head of markets and equities at Aptus Capital Advisors, told NewsNation that people turn to metals to prepare themselves for the fall of the US dollar.
“If someone’s going out to buy gold, that means they think that there’s some type of instability at the structural level of the market and/or the government itself,” Wagner said.
Worries about society’s instability grow with recent tech outages and natural disasters.
Jonathan Rose, the CEO of Genesis Gold Group, told The U.S. Sun earlier this year that wealthy people usually hoard gold to prepare for the end of life as we know it.
“I think these people are realizing that, hey we don’t have a crystal ball per se, but we have a good road map and they are looking at the problems the economy is having right now,” Rose said.
Who is hoarding gold and why?
Gold expert Jonathan Rose, the CEO of Genesis Gold Group told The U.S. Sun who is hoarding and the benefits of it
- Wealthy Individuals and Elites: Millionaires, tech executives like Mark Zuckerberg and Sam Altman, and pro athletes are among those hoarding gold for doomsday preparations.
- Concerns Over Economic Collapse: The surge in gold purchases is fueled by fears of the devaluation of the dollar and an overall economic downturn.
- Prepping for Various Scenarios: The current surge in gold purchases is attributed to concerns ranging from the 2024 presidential election to recent AT&T power outages, which some fear were cyber attacks.
- Role of Gold in Bartering: Gold is seen as a valuable asset for bartering in a doomsday scenario, where traditional currency may lose its value.
- Preference for Small Denomination Coins: Buyers are increasingly seeking small-denomination gold and silver coins, which are considered more tradable and easier to barter with.
- Gold as a Tradable Currency: In a doomsday situation, gold is perceived as a more reliable currency than paper money, capable of securing essential goods and services.
- Gold as a Symbol of Value: In times of crisis, gold holds significant value as a tangible asset, prompting individuals to stockpile it for potential future use.
“Whether they’re looking at dollar devaluation or these things called brick nations, which are countries banding together to create their own currency backed by gold.
“And with the dollar losing its value, there’s just the general economic concern of combating inflation and that’s why many people will move to a safe haven,” he explained.
Rose told The U.S. Sun that gold bars like the ones sold at Costco, could be broken like “candy bars” to be bartered with in the future.
The CFTC said that banks and other big investors also buy gold and other assets like oil to prepare against inflation and “other economic risks.”
“Some investment advisers may even recommend that individual investors put small percentages of their diversified portfolios in precious metals too,” the agency said.
“But that doesn’t mean that gold or silver or other metals are ‘safe’ places to park your wealth.”
Costco told The U.S. Sun that shoppers can check the store’s online site to see when the gold bars are back in stock.
