Costco selling as much as $200 million in gold bars monthly, Wells Fargo estimates
Publishing timestamp: 2024-04-09 12:23:01
Summary
Costco's sales of gold bars have become a cash cow for the retailer, with analysts estimating revenue to be between $100 million to $200 million per month. The sales have been driven by aggressive pricing, high customer trust, and a sharp uptick in momentum since the launch of the product. Despite adding about 3% to general merchandise sales, the gold bars are not contributing much to profit due to low margins and additional cash back offers for customers. However, as an investment, gold is seen as a natural hedge against inflation and geopolitical uncertainty.
Sentiment: POSITIVE
Keywords: business news, costco wholesale corp, wells fargo & co, metal commodities, retail industry, markets, gold / us dollar spot,