Costco’s decision to sell precious metals has brought it golden buzz.
A Wells Fargo report stated that the bank’s analysts believe that the warehouse retail giant is selling between $100 million to $200 million in gold per month.
Wells Fargo suggested that the precious metal offering was a way to add value to the company’s brand noting that “it’s a very low-profit business at best.”
“We view the addition of gold/silver as a smart move for Costco, as it only reinforces its value position,” the report said.
The buzz around Costco’s offering has led to increased interest in investing in the metal, according to Zachary Scott, general manager of Wilshire Coin in Santa Monica, Calif. Scott said that he is seeing customers who are “less than typical” brought in after seeing gold being sold by “a trusted company.”
“It’s bringing in new buyers and interest, though not in massive amounts, who have seen the articles around Costco selling gold,” Scott said.
How much gold is Costco selling?
Using the estimates from the Wells Fargo report and an approximate price of $2,000 Costco sells between 50,000 and 100,000 ounces of gold per month.
USA TODAY reached out to Costco to inquire about the volume of gold it has sold and did not receive a response.
Gold prices since Costco started selling
After Costco introduced the 1 oz. gold bars to its website last October the spot price of the metal held steady around $2,000 until an upswing that started in February.
The metal made a run at the start of March…
