Costco has emerged as a unique player in the precious metals market, allowing its members to purchase gold, silver, and platinum alongside everyday groceries. This unconventional option has gained traction, with the wholesale giant reportedly selling hundreds of millions of dollars in precious metals each month.
To access this unusual shopping opportunity, a Costco membership is required, as only members can purchase these assets. The basic Gold Star membership suffices, but those planning significant investments may find the Executive membership more advantageous. For an additional $65, Executive members earn 2% back on most purchases, including precious metals. This means a purchase of a one-ounce gold bar currently priced around $4,100 would yield about $82 in rewards—enough to cover the cost of the membership upgrade, offering enhanced savings for serious buyers.
Shopping for precious metals on Costco’s website can be simplified by navigating to the newly designated precious metals section within the jewelry and watches category. Previously listed under sports memorabilia and collectibles, the change aims to make these items easier to locate. Prices for gold bars often hover near the market’s “spot” prices, but when they do, they tend to sell out rapidly. Recently, a one-ounce gold bar from South Africa’s Rand refinery was priced at $4,179.99, reflecting only about a $100 premium over the spot price. Larger items, like a 100-gram bar, are also available, with a current price of $13,499.99.
In response to fluctuating demand, Costco enforces purchasing limits on precious metals, restricting how much a member can buy in a single transaction or within a 24-hour window. Delivery times typically span 3-5 days after an online purchase, with shipping carried out by either UPS or FedEx. It’s worth noting that during periods of high demand or at the end of the week, these times may extend.
For those who prefer an in-person shopping experience, select Costco warehouses may stock these precious metals. Availability can vary, so shoppers are advised to keep an eye out for signage that promotes seasonal or specialty items. Additionally, inquiring at the front desk or checking the jewelry case near electronics can yield information on current inventory.
The purchase process in-store is somewhat different from the typical grocery run. Customers must fill out a form with the specific SKU and quantity of the item they wish to buy. Following this, they need to bring the slip to the front office, where a staff member will retrieve the item and assist with payment—a slightly more involved procedure than simply adding an item to a cart.
There are a few essential points to consider before purchasing gold at Costco. First, while Costco generally maintains a favorable return policy on most products, precious metals are notably excluded. Once a transaction is completed, no price adjustments or refunds will be issued.
Second, financing gold purchases through credit cards or other interest-bearing methods may not be advisable. Although some buyers might leverage credit rewards, experts suggest paying off any debt incurred promptly to avoid interest that could negate potential gains from the investment.
Lastly, selling gold can prove more complicated than acquiring it. Dealers recommend holding onto physical precious metals for the long term, as selling without a clear strategy could lead to unexpected losses. This insight emphasizes the importance of approaching precious metal investments with careful consideration and planning.
