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Costco's sales soar with $100 million in revenue from 24-Karat gold bars

Sunday, 17/12/2023, 17:51 (GMT+7)

Costco, the global retail chain, has witnessed an unprecedented surge in sales, amassing a staggering $100 million in revenue from the sale of 24-karat gold bars.

Costco, the global retail chain, has recently announced a staggering $100 million in revenue from the sale of 24-karat gold bars

This unexpected trend has sparked a frenzy among buyers, who are fervently scouring different store locations in search of these coveted items. 

With customers enthusiastically trading their dollar bills for these exquisite gold bars, Costco's CEO and CFO have shed light on the astounding demand and its impact on the company's financial success.

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Costco achieved a staggering $100 million in revenue from selling 24-karat gold bars. Image Getty

Costco, renowned for its wide range of products, from clothing and electronics to bulk food items, has added a unique item to its repertoire—the one-ounce 24-karat gold bar

According to Richard Galanti, the CEO of Costco, the company has witnessed an astounding demand for these gold bars, resulting in $100 million in sales during the latest quarter.

Costco's gold bars cost $2,000 to $3,000 per ounce and are limited to two bars per member

The allure of owning a bar of gold has captivated buyers, who are now eagerly exchanging their dollar bills for these precious bars. 

With a price range of $2,000 to $3,000 per ounce, Costco's gold bars have become highly sought-after items. 

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Costco offers two varieties of gold bars. Image Credit: Costco

The limited availability and exclusive nature of the product have fueled a sense of urgency, leading to the bars selling out within hours after each restock.

Costco's chief financial officer, Richard Galanti, claimed the overwhelming response: "I've received numerous calls from people who have seen our one-ounce gold bars available online. However, due to their high demand, they typically disappear within a few hours, and we have implemented a limit of two bars per member."

Selling limited quantities increases the number of customers

The restriction of two bars per buyer, both online and in-store, has further intensified the frenzy surrounding these gold bars. 

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The limited sale of gold bars increases consumers' desire to own them. Image Credit: TikTok

Customers have taken to social media to express their frustrations, recounting stories of missed opportunities and the challenges of securing one of these limited-edition bars.

Costco 24-karat gold bars spark debate about their eye-watering cost

While Costco is renowned for offering value and discounts, the sale of gold bars has polarized its loyal customer base. 

Some view these bars as a novelty item, appreciating their aesthetic appeal and value as a collector's item. 

Others, however, criticize the high price point, arguing that they would rather spend their money on essential items like groceries and daily necessities.

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The extremely high price of gold sparks divided opinions about owning this rare commodity. Image Credit: Costco

Costco's foray into the gold market began in September when the bars were initially introduced at slightly higher prices than the prevailing market rates for gold. 

With the current market price of gold at $1,876.12 per ounce, the premium pricing of Costco's gold bars did not deter buyers, who eagerly embraced the opportunity to own a piece of this precious metal.