Costco selling gold 1-2 B a month!

Kitco:

https://www.kitco.co...tail-purchasing

“The company prices the product attractively, providing members gold at ~2% above spot prices before a 2% cash back reward for executive members and another 2% in cash back for those with the Citi card. That being said, pricing at that level and shipping costs suggests it’s a very low-profit business at best,” the analysts said.

The equity analysts said they estimate Costco is selling $100 to $200 million in bullion every month.

The analysts also noted that while bullion sales are helping to drive online sales, they are probably not adding much to the company’s bottom line.

WHAT'S IN YOUR MAILBOX?

Edited by Rogerdodger, 03 June 2024 - 11:54 AM.

Kitco:

https://www.kitco.co...tail-purchasing

 

“The company prices the product attractively, providing members gold at ~2% above spot prices before a 2% cash back reward for executive members and another 2% in cash back for those with the Citi card. That being said, pricing at that level and shipping costs suggests it’s a very low-profit business at best,” the analysts said.

 

The equity analysts said they estimate Costco is selling $100 to $200 million in bullion every month.

The analysts also noted that while bullion sales are helping to drive online sales, they are probably not adding much to the company’s bottom line.

 

 

WHAT'S IN YOUR MAILBOX?

Reminds me of the txi drivers in NYC circa 1999, giving tips on tech stocks.

If I'm going to "Buy" gold, it's makes more sense to me to just buy an etf like GLD in my tax free Roth. More Security and no tax issues.

Back when I was casting gold jewelry as a hobby/business, I used to buy "scrap" gold jewelry from pawn shops to melt down.

It was usually cheaper than the casting grain.

The problem was that my wife kept "borrowing" from my stash.

Retail gold markup is "Keystone",  which is at least double the wholesale cost!.

No wonder new Air Conditioner prices have gone up! They are made of 24K GOLD!