Costco’s gold bars are selling out fast as shoppers eye financial security

In a striking display of shifting consumer behavior, Costco (COST) Wholesale gold bars are disappearing from shelves faster than they can be restocked.

During the first week of October, a staggering 77% of surveyed Costco locations reported being sold out of the precious metal, a Bloomberg survey noted. The trend, based on calls made to 101 stores in 46 states, highlights a growing shift among shoppers to secure the tangible assets as a hedge against financial instability. The stores surveyed said they had restocked their gold products.

Historically, gold has served as a safe haven during periods of economic turmoil. In times of inflation, geopolitical tensions or market volatility, investors flock to gold, viewing it as reliable store of value. The recent surge in sales for Costco’s gold bars underscores a renewed interest in the timeless investment strategy, which is further highlighted by the price of commodity, which has surged to all-time highs.

Costco began selling the gold bars last September for about $2,000 each to its rewards members. In late January, it started offering one-ounce silver coins in a pack of 25 for $675. Most recently, the retailer has started selling one-ounce platinum bars for $1,089.99.

Gold remains Costco’s best selling precious metal. Earlier this year, the retail giant was reportedly generating approximately $200 million each month by selling the gold bars, according to a research note from Wells Fargo (WFC).

As the demand for gold continues to soar, the implications are significant and retailers like Costco could continue to benefit. More broadly, the buying frenzy not only illustrates a shift in consumer confidence but also raises important questions about the future of investment strategies. Will this trend signify a lasting commitment to gold, or is it merely a temporary reaction to current events?

For now, the empty shelves at Costco serve as a powerful reminder of the lengths to which consumers will go to safeguard their futures.