“You’ve probably read about the fact that we’re selling one-ounce gold bars. We sold over $100 million of gold during the quarter,” sad CFO Richard Galenti.
Now, Wells Fargo estimates that Costco “may now be running at” $100 million to $200 million per month in gold sales.
“Our work suggests there has been significant interest given COST’s aggressive pricing and high level of customer trust,” said analyst Edward Kelly in a Tuesday note to clients. “The accelerating frequency of Reddit posts, quick on-line sell-outs of product, and COST’s robust monthly eComm sales suggests a sharp uptick in momentum since the launch,” CNBC reports.
Costco is selling one-ounce bars made of nearly pure 24-karat gold. While the price is not disclosed online to nonmembers, it’s estimated that the product generally sells for about 2% above the spot price, which as of Tuesday morning was around $2,357 an ounce. That would put the price at Costco just over $2,400.
Sales of Costco gold bars are now limited to five per customer (up from two), while executive members receive 2% back. Those who use their Citigroup credit cards will receive a further 2%.
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