(CTN News) – Costco’s success with its latest offering of gold bars can be attributed to the global economic uncertainty witnessed in recent years.
As people seek to protect their wealth and hedge against inflation, the demand for gold has surged. Costco recognized this opportunity and began selling 1oz (28g) bars of 24-karat gold exclusively online in September.
With over 72 million paid memberships, Costco’s gold bars have become highly sought after.
The company’s CFO, Richard Galanti, revealed during a September earnings call that the gold bars typically sell out within a few hours of release. This high demand is a testament to the trust and loyalty that members have in the brand.
The exact price of these gold bars is not publicly available, as they are reserved for members only. However, some media outlets have reported that the bars are priced just below the current market price of gold, which stands at $2,048.30.
This competitive pricing strategy further adds to the appeal of Costco’s gold bars.
While Costco is renowned for its bulk sales and discounted prices, the company also offers a few other high-value items. In the last quarter, Costco reportedly sold an index card autographed by baseball legend Babe Ruth for $20,000.
This demonstrates that Costco caters to a wide range of customers, including collectors and enthusiasts.
Furthermore, Galanti humorously mentioned that “last-minute shoppers” could still purchase an autographed 1951 rookie card from Mickey Mantle for a staggering $250,000. These high-value items showcase the ability to provide unique and exclusive offerings to its members.
It is worth noting that both the gold bars and the autographed items are eligible for refunds. This highlights its commitment to customer satisfaction and its willingness to stand behind the quality and authenticity of its products.
Overall, Costco’s success with its gold bars and other high-value items is a testament to the company’s ability to adapt to changing market demands and provide its members with unique and valuable offerings.