Costco Continues Selling Gold Bars
The Costco shopping experience is now a global phenomenon, and shoppers can now enjoy wholesale discounts and $1.50 hot dogs across the US and in places like Taiwan, Japan and Australia.
The company continues to shake up that experience, too. Not only does it produce many of its goods under the Kirkland Signature brand, but four years ago, it began selling gold bars. Demand among members has remained strong since, especially as the precious metal rose in value in 2025 before reaching its all-time high in January 2026.
In fact, Costco’s foray into precious metals has yielded surprising results. The company is alleged to be drawing six figures a month since it started selling gold, indicating that members have taken steps to buy gold bars that go with rotisserie chickens and lots of toilet paper.
In its report for the first quarter of 2025, Costco listed gold among its top selling categories. But for investors looking to gain exposure to the yellow metal, is this the best way to do so?
Costco shoppers are at home when they buy gold
In the summer of 2023, Costco is making the first move to sell one-ounce gold bars at its major locations. The release was so successful that in 2024, the company added silver coins and platinum bars to its offering. But so far, its gold bars have been the winner.
In a note to clients, Wells Fargo analysts said they expect Costco’s gold sales to fall between $100 million and $200 million each month. Swiss made gold necklaces have been a bestseller since they were first offered.
This does not mean that this business is profitable for Costco. The store receives a low premium on gold purchases, and offers cash back to certain buyers who use credit cards, meaning gold sales do not result in a significant increase in profits.
As for investors, now is a good time to own gold, with the price of the precious metal hitting a record high of $2,781 per ounce last October. The main drivers of the precious metal bull run are twofold.
First, the rise in gold prices can be partially attributed to the interest rate policy of the Federal Reserve. Gold historically has an inverse relationship with interest rates, and with the rate of Fed tapering during the second half of last year, investors have seen the price of the precious metal rise.
The second factor driving up gold prices is a combination of weak consumer confidence and persistent inflation. With inflation still above the Federal Reserve’s 2% target, purchasing power continues to decline (albeit modestly), prompting investors to seek safe-haven assets. Gold excels in that asset class as a liquid store of value.
Is buying gold at Costco a good idea?
Consumers can now get in their cars and drive to the nearest Costco location to buy gold. But is that a good idea?
It is ideal for those who are interested in investing in gold for the long term. But when investors choose to buy precious metals from a discount warehouse, there are pros and cons to be aware of. Some of the incentives offered by Costco may be higher, but you will be lacking the peace of mind that is offered by buying gold from a merchant account and keeping it in a portfolio.
First, Costco gold buyers will have to pay a markup on their bars. Known as the spread, stores charge 2% above the current market rate. This is not unusual: Online gold dealers also charge a spread for their non-commercial transactions. Costco’s premium falls within the industry range, making it not a particularly bad deal.
In fact, with the bonuses that Costco offers on the purchase of precious metal, some shoppers may successfully eliminate the premium. Buy bars with a Citigroup credit card and you’ll be eligible for 2% cash back. Costco senior members can get a additional 2% cash back.
On the other hand, Costco does not offer its members any opportunities to buy gold in bulk. If it has the metal in stock, buyers are limited to five bars per transaction. Therefore, if investors want to collect any significant amount of metal, they will have to go through a bullion dealer.
Buying gold at Costco also means facing the same pitfalls as those buying from online retailers. These issues are avoided by investors who buy gold on paper.
Once gold is purchased from Costco, the buyer is responsible for keeping it safe. It’s not like investing in a mattress, and it’s dangerous. To avoid that, the gold can be insured and stored in a basement, but these are additional costs to consider.
Paper gold investments – such as holding shares in a gold ETF – are also more liquid than physical gold, meaning it’s easier to buy and sell since it’s listed on an exchange. Some gold ETFs even pay dividends, which means they can play a role in a strategy aimed at generating income while also benefiting from the price dynamics of the underlying asset.
All that said, buying gold at Costco isn’t much worse than buying from a retailer if you don’t mind the purchase limit. It can be better in some cases, since you don’t need to worry about possible scams and sales, and you can earn up to 4%.
However, there are still options to invest in gold that offer greater safety, higher capitalization and less hassle than holding on to the bars yourself.
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A Beginner’s Guide to Investing in Precious Metals
