The gold market has seen remarkable growth this year, with Costco’s latest sales figures highlighting a continued demand for physical gold, despite record-high prices. The retail giant reported net sales of $78.2 billion for its fourth quarter and fiscal year-end of 2024, a 1% increase from $77.4 billion in the same quarter of the previous year.
A key driver of Costco’s online sales has been its gold bullion products, with sales surging by double digits over the last three months. Costco’s CFO, Gary Millerchip, noted that gold provided a “meaningful tailwind” to the company’s e-commerce sales, as bullion products frequently sell out online.
Costco’s gold sales have gained significant attention as prices surpassed $2,000 an ounce, drawing interest from analysts. Some, like Evercore ISI’s Greg Melich, have even speculated on potential private-label gold products under Costco’s Kirkland Signature brand. However, President and CEO Ron Vachris confirmed there are no such plans at this time.
The surge in Costco’s bullion sales is further supported by unique offerings. Last week, the company announced a partnership with the Royal Canadian Mint, giving members the exclusive opportunity to purchase a Gold Maple Leaf Single Mine coin. The gold for this coin is sourced from Agnico Eagle’s Detour Lake mine in Ontario.
Although gold prices have recently dipped from their record highs, analysts expect physical demand to remain strong through the end of the year. Joseph Cavatoni, Senior North American Market Strategist at the World Gold Council, emphasized that gold continues to be an attractive investment, particularly in physical form, as the Federal Reserve enters a new phase of monetary easing.
