Gold has been traded for millennia, but it’s not considered currency in the modern sense. Costco sells millions of dollars worth of gold bars every month, with supply selling out quickly whenever released for sale. Shoppers are learning that buying gold is easier than reselling it, as trading commodities is full of complications.
When Costco releases a batch of gold bars for sale, they typically sell out within hours as shoppers buy the precious metal at a small markup over its spot price. The allure of a hard-to-get item is created by the out-of-stock notices, but Costco continues to move a large amount of gold bars and silver coins each month, with estimates around $200 million.
However, buyers are realizing the complexities of trading commodities after purchasing gold bars from Costco. Unlike stocks, selling gold bars involves a friction between what was paid and what is received. It is not as simple as finding a buyer who will pay the desired price, as some shoppers are finding out the hard way.
Gold bars are classified as collectibles by Costco and the IRS, which may or may not retain their value over time. The IRS may demand a 28% cut of any profits made on gold held for over a year. With additional expenses like interest, taxes, shipping, and the hassle of finding a buyer, trading gold bars may not be worth the trouble, even at Costco prices. Despite this, many shoppers continue to buy gold bars from Costco in hopes of making a profit in the future.