Article Image

IPFS News Link • Gold and Silver

Millennials Rush to Buy $2,300 Gold Bars at Costco

•, By Mish

Gold Bars in the Shopping Cart

The Wall Street Journal comments on Gold Bars in the Costco Shopping Cart.

Costco, which started offering gold bars last year online and in a few stores, has been selling out within hours. Consumers rated gold as a better investment than stocks and mutual funds in 2023 for the first time in a decade, according to a Gallup poll. The price has been hitting record highs.

Gold buyers, especially those on the younger side, say it is a hedge against catastrophe. Even people who aren't building bunkers and predicting doomsday are increasingly preparing for worst-case scenarios. Natural disasters, wars in Ukraine and the Middle East and the Covid-19 pandemic are fresh in the minds of many. There is also fear of financial calamity.

Some millennial investors said they don't trust the financial system, especially after a series of bank failures last year. Searching for a safe store of value some turned to gold—and Costco.

The warehouse retailer said it sold $100 million in gold bars in 2023. It later added silver coins to its inventory. Precious metal sales helped drive 18% year-over-year growth in e-commerce sales during its most recent quarter, which ended in February, Costco said.

Millennial gold bugs

Compared with older generations, millennials have a more optimistic outlook on the benefits of gold, as well as the ease of buying and selling it, according to research by financial-services company State Street. The average millennial allocates 17% of their investments to gold, including exchange-traded funds, while Gen X and baby boomers invest 10% of their portfolio in the metal.