As the value of gold continues to climb to unprecedented levels, setting new benchmarks almost weekly, enthusiasm for the coveted metal has reached a fever pitch among Costco’s customer base. On Wednesday, for instance, the price of gold surpassed the impressive threshold of $3,600 per ounce, a milestone that has become a significant catalyst for heightened sales activity within Costco’s wholesale operations. This surge of demand demonstrates how global market forces directly intersect with everyday retail shopping habits, creating unusual but highly profitable opportunities for large-scale retailers.
Although Costco refrained from providing precise sales figures for its gold bars and coins in its May third-quarter earnings call, management confirmed that the precious metals category had remained one of the company’s strongest online performers. Analysts, drawing upon prior estimates, suggest that Costco is likely moving approximately $200 million worth of gold and silver products every single month. Evidence of this immense appetite was shared publicly by former Chief Financial Officer Richard Galanti, who explained that gold inventories often sell out within mere hours of being listed, indicating both the scarcity of supply and the intensity of consumer demand. Posts on the Costco-focused subreddit, CostcoPM, reinforce this narrative, often noting that when the spot price of gold rises faster than the retail price offered by Costco, the company’s entire stock is depleted at an especially rapid pace.
One of the main reasons for this brisk turnover lies in Costco’s unique pricing philosophy. Unlike many specialty dealers who add significant premiums to precious metal sales, Costco operates with an exceptionally thin markup, a strategy that makes the wholesale giant immensely appealing to seasoned investors as well as to newcomers dabbling in the purchase of physical bullion. One enthusiastic enthusiast even likened Costco’s entry-level accessibility to a “gateway drug” for gold investing during an earlier interview, suggesting that the retailer is unintentionally cultivating a new generation of buyers by lowering perceived barriers to entry.
From a business strategy perspective, however, Costco’s approach to precious metals is even more intriguing. While each transaction yields relatively modest profit margins when compared to other categories, these sales provide the company with a powerful mechanism—almost a so‑called ‘cheat code’—to accelerate the growth of its developing e-commerce operations. Precious metals occupy a special role: they are high-value, low-maintenance items that require little additional infrastructure beyond secure acquisition and reliable distribution. By routing hundreds of millions of dollars in transaction volume through Costco.com, the retailer can showcase rapid digital growth at minimal risk and without needing to commit to major capital expenditures. They simply purchase a batch of bullion from reputable suppliers and then pass each unit directly into the hands of eager members.
Thus far, the rewards of this strategy have been tangible. Digital revenues in the third quarter expanded by 14.8% compared to the same period in the prior year, an acceleration that itself built upon the already impressive 20.7% growth recorded during the third quarter of 2023. That was, notably, the first year in which Costco publicly acknowledged its venture into precious metals retailing. These back-to-back gains illustrate how effectively Costco has managed to harness consumer fascination with gold while translating it into measurable growth on its online platform.
The initiative also benefits Costco’s core membership model. Because gold and silver sales are strictly limited to members, the excitement and publicity surrounding these offerings become a powerful marketing tool that entices new sign-ups. From the perspective of prospective customers, the logic is plain: paying a $65 annual membership fee seems negligible when one is considering the purchase of a $3,600 gold bar. In effect, the membership is more than offset by the potential value of the purchase. This membership-driven exclusivity not only boosts direct sales but also strengthens Costco’s broader ecosystem by drawing in individuals who may later engage with other categories of the retailer’s vast inventory.
Looking ahead, greater transparency may emerge in the months to come. Industry watchers anticipate that Costco could provide more extensive disclosure regarding its precious metals segment during its upcoming full-year earnings report, scheduled for September 25. Whether or not these details are revealed, however, it is already evident that Costco has identified a novel, efficient, and remarkably lucrative avenue for growth, one that bridges market volatility in global commodities with the evolving behaviors of everyday shoppers.
Sourse: https://www.businessinsider.com/gold-bars-costco-silver-coins-bullion-top-sellers-2025-9
