Costco, the large chain of retail stores, recently reported a huge surge in demand for gold bars over the past quarter, supposedly selling more than 100 million of the bars over the same period.
It’s not quite clear why Costco decided to start selling gold bars in the first place but according to some industry insiders, the move is likely related to investor concerns generated by an otherwise uncertain global economic situation. As the pandemic continues to rage on, stock market forecasts are looking increasingly volatile and many investors are now turning towards physical assets as a safe-haven for their money.
Considering it’s relatively low cost of ownership, gold is a great alternative to stocks and shares and Costco has seemingly seized the opportunity to provide its customers with access to this form of investment. The surge in demand has been further compounded by the added social status associated with owning the precious metal too, as the bars can usually be purchased in a variety of denominations, and some even come encased in elaborate luxury casings.
In light of all this, it looks like Costco’s gamble of selling gold bars has paid off in spades and it seems a small price to pay for protecting oneself from any potential market crashes. At the same time, gold still has its risks and investors are advised to do their option before deciding to purchase the asset.