Gold fever is no longer limited to China and India, as Americans are buying the precious metal at the supermarket Costco. The accumulation spree was so massive that stocks of gold bars at Costco shelves remain sold out at the moment. Retail investors and regular shoppers are adding the precious metal to their carts as they see it as a safe investment.
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A recent report from Bloomberg shows that 77% of Costco stores offering gold bars sold out in early October. 46 US States sold out the bars this month and went off the shelves within a week of their placement.
The accumulation spree comes after China and India purchased thousands of tons of gold in two years. Americans are not holding back and are grabbing the gold bars, as Costco made them available at its stores.
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“We are glad to be able to offer gold and silver items for our members. It’s a great example of our merchants constantly finding new ways to deliver uniqueness and value,” said Costco’s Chief Financial Officer (Retail) Gary Millerchip.
Shoppers are drawn to Costco’s gold bars for their convenience and the belief that they’re the best investment choice. The asset is a safe haven during financial turmoil and offers itself as a store of value in the long run. Gold bars provide value during economic uncertainties and act as a hedge against inflation.
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“It’s physical and gold does have a long history of being a store of value even though there’s no cash flow from it. It’s a good personal diversifier,” said Josh Young, a Money Manager, after buying a gold bar at Costco. The price of precious metals is pumping in the charts as the XAU/USD index is at $2,661.
