Buying physical gold can be complicated and expensive. However, Costco offers gold bars at prices very close to the market value. Yes, the same Costco that sells food and household items. The thing is that with their membership and rewards system, some customers can save up to 4% when buying gold. I mean, it doesn’t sound bad, does it? Let’s learn more about this.
Gold at Costco
Apart from food and household items, Costco also offers you find 1-ounce, 24-carat gold bars. You can buy them online or at selected physical stores and you would buy bars coming from world-renowned refineries, including Rand Refinery in South Africa and PAMP in Switzerland.
Gold prices go up and down all the time, but at Costco you will find its gold bars very close to the real market price of gold, which is why they are often cheaper than buying from jewelry stores or specialized sellers.
For example, when the market price of gold went above $5,100 per ounce, Costco was selling its gold bars for around $5,000 per ounce. This means you’re paying almost the true value of the gold, without extra or hidden fees added on top.
Memberships
Are you interested in enjoying this price? Well, you need an active membership: the Gold Star ($65 per year) or Executive ($130 per year). Both allow you to purchase up to four gold bars in a 24-hour period, but the Executive membership has a key advantage: it offers an annual 2% reward on all purchases, including gold. What’s more, this reward can be used as credit for future purchases.
For example, if a member buys a gold bar priced at $5,100, they would receive a reward of more than $104 just from that purchase.
Free shipping and simple process
Something great about Costco is that shipping is included in the price and is handled via FedEx. This avoids extra handling or transport fees, which are common when buying gold elsewhere. Also, the process is straightforward and fast, eliminating many of the usual complications of buying precious metals.
More advantages!
Do you know about the Costco Anywhere Visa Card by Citi? If you don’t, you are missing the chance to increase your savings because it offers an additional 2% back on purchases made at Costco.
Here’s the thing, if you combine the Executive membership and the rewards card, the total effective discount can reach almost 4%. That’s over $200 saved on a single gold bar! I mean, who wouldn’t think Costco as a positive option for buying physical gold smartly?
However…
I’m sure you might think that all of this sounds incredible, right? However, you should know there are some disadvantages when buying gold at this store:
- Geographic limits: Shipping is not available in Nevada or Puerto Rico, leaving some members unable to order.
- Storage: Gold bars are usually not covered by home insurance, so you need to carefully decide where to keep them.
- Resale difficulties: Costco usually has very flexible return policies, but gold is an exception. Once you buy a gold bar, it cannot be returned or refunded, so it’s important to be sure before making the purchase.
To sum up
If you are one of those who already have an Executive membership and the right rewards card, buying gold at Costco can cost you less than buying from coin dealers or specialized stores.
The key is to take full advantage of the membership benefits, understand the risks, and know how gold pricing works.
So, buying gold doesn’t have to be intimidating, whether you are investing for the first time or adding to a collection, Costco shows that even complex purchases can be made simple and profitable.