Costco gold: the chain launches its bullion line
Weighing one troy ounce and comprising 24 carats, the company capitalizes on concerns about inflation and the devaluation of the dollar to sell its products above market prices.
(Wikimedia Commons)
Costco is selling limited edition gold bars to its members. The wholesale supermarket chain decided to launch a special line of one troy ounce bars with 999.9 purity of 24-karat gold.
The bars are available through its website, but only for members of the supermarket chain at prices marginally above the official market price. The bars cost $2,000 for those who pay the $160 annual fee as members of the outlet.
Along with the product, Costco released a promotional video detailing some parts of the bullion design process. Each unit features an engraving depicting a blindfolded woman and a classic cornucopia.
According to the information available on Costco's website, the bar was designed and produced in Switzerland, a European country renowned for its banking entities. "Lady Fortuna" was the name chosen for this series of ingots.
This is not the first time Costco has sold gold bars. In Iceland and the United Kingdom, the brand sold units with double the price and weight of this last line. Costco took advantage of the fear related to the inflationary wave that came after the war in Ukraine to put these products on sale. It is, however, the first time that the chain is selling its own line of this product.
An analyst cited by CNBC assures that Costco takes advantage not only of the fear of inflation, but also of a hypothetical collapse and global disaster. A scenario in which the possession of gold, in its most material and direct form, constitutes access to wealth. For these reasons, selling a bar at a price that slightly exceeds the market price, in addition to the customization of the special edition, there is a Costco clientele that is interested in this product.
"They've done market research. I think it's a very smart way to get their name out there and get a lot of publicity," said Jonathan Rose for CNBC. "There's definitely a crossover between people who live off the land, who are self-sufficient, who believe in their own currency. That's the appeal of gold as a safe haven as people lose faith in the U.S. dollar."
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