THE COSTCO SHOPPERS PUTTING $2,000 GOLD BARS IN THEIR CARTS / THE WALL STREET JOURNAL

The Costco Shoppers Putting $2,000 Gold Bars in Their Carts

Young investors say the old-school store of value is a hedge against inflation and catastrophe

By Katherine Hamilton

ILLUSTRATION: THE WALL STREET JOURNAL, ISTOCK, PIXELSQUID

Craig Beauregard and Julia Edwards were at Costco shopping for groceries in December when they spotted a deal that was too good to pass up: a one-ounce bar of gold.

Beauregard, 33 years old, checked his phone and saw the bar’s retail price of $2,069 was $3 below its on-the-spot price in financial markets. 

The bar was also a Year of the Dragon edition, an auspicious keepsake ahead of the couple’s planned wedding in June. 

They threw it in their shopping cart next to a seven-pound bag of frozen chicken and a carton of Kirkland eggs.

Americans can’t get enough gold. 

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.

Beauregard and Edwards said inflation has eroded their trust in the U.S. dollar. 

They increased their investment in physical silver and gold to diversify their portfolio, which also includes 401(k)s, stocks and crypto.

“It’s just nice to have options when we don’t really know what’s going on,” said Edwards, 29. 

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.

Craig Beauregard and Julia Edwards said inflation has eroded their trust in the U.S. dollar. PHOTO: SOLARE WEDDING PHOTOGRAPHY

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. 

Joe Roselli signed up for a Costco membership to buy two $1,959 gold bars online in August 2023. 

The Florida resident, who is in his 30s, said it was a hedge against economic collapse. 

“I want something physical that I can hold,” he said. 

“I’m protecting against a situation where there is hyperinflation.”

Gold historically does better when the economy does worse. 

But gold futures rose 13% in 2023, even as the economy kept growing and inflation cooled. 

Bank stocks, meanwhile, fell almost 5%.

There are many ways to invest in gold or futures attached to the metal, such as mutual funds. 

Still, financial advisers often discourage clients from putting too much of their money in metals. 

Gold futures rose 76% over the last 10 years, while the S&P 500 rose 176%. 

A known brand

Costco has made it easier for members to shell out thousands of dollars on gold bars—and get a $1.50 hot dog while they are at it. 

Despite a per-customer limit, some gold buyers said Costco’s prices were lower than they had seen at other retailers.

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.

Jared Nagano bought two gold bars at a Costco in Las Vegas while on vacation. PHOTO: JARED NAGANO

The bars, less than 2 inches long, are sold primarily online from Swiss-based refiner MKS PAMP or South Africa’s Rand Refinery. 

Costco sends out gold ordered online through insured UPS packages. 

A select few stores across the country have also stocked them in their jewelry department, where they have been selling out quickly.

“If you want the Costco bars, you’ve got to track the truck,” Jared Nagano said he was told by a store employee. 

In other words: Keep track of when stores are restocking, as online forums of Costco members regularly post when gold bars are available.

The 31-year-old bought two bars, the maximum he said he was allowed to buy at the time, while on vacation in Las Vegas in the fall.

He has been searching Costco stores around his home in San Francisco ever since.

“I trust Costco,” Nagano said. “And it’s such a good deal.”