The big box retailer, which started selling 1-ounce nearly pure 24-karat gold bars priced at about $2,000 last fall, has seen a growing amount of consumer interest recently amid inflation and economic uncertainty. In a new equity research note from Wells Fargo, the bank estimated Costco has generated $100m to $200m per month in gold bar sales.
"We view the addition of gold/silver as a smart move for Costco, as it only reinforces its value position," the report stated. "That being said, pricing at that level and shipping costs suggests it's a very low-profit business at best."