Turns out, you can buy gold at Costco and your membership could make it even cheaper
While most shoppers believe Costco is the place to get the best deals on groceries, home supplies, and its $1.50 hot dog combo, a few smart members know that the warehouse retailer dabbles in the business of precious metals as well. As the price of gold keeps making headlines, Costco is selling 1-ounce gold bars that are flying off the shelves, and as per reports, even the veteran deal-hunters rarely spot them. On top of that, lucky members of the retailer even stand the chance of getting a double-dip discount on gold and some benefits if they use their membership smartly.
Since the start of the new year, gold prices have jumped by 15%, crossing the $5,100/ounce mark this week, as per CNBC. The record-breaking run of the yellow metal isn't showing signs of slowing down, amid economic and political volatility. Capitalizing on the demand, Costco is selling 24-karat, 1 Troy-ounce gold bars both online and offline in select stores. The bars come from highly regarded brands like the South Africa-based Rand Refinery and Switzerland-based PAMP. The retailer generally marks up the price of the bars close to the spot price, which is hovering a little over $5,000, but members can stack their reward program benefits to get a better deal than any other shop or dealer.
To buy gold from Costco or even check the prices, shoppers must have a membership. Costco's Gold Star membership comes at a cost of $65 per year, and the Executive membership costs $130 per year. While both memberships allow customers to make one transaction for gold and a maximum purchase of four units in 24 hours, the premium membership gives a 2% annual reward on all club purchases, including gold.
The reward certificates are issued as store credit to use on future purchases, and given the price of gold, they can be substantial. For instance, if a customer bought gold at a spot price of $5,100, they would get a reward worth just over $104. Furthermore, smart shoppers who avail the Costco Anywhere Visa Card by Citi can get an additional cashback on their purchase. With the two benefits stacked, members will get an effective discount of 4% on their gold purchase, meaning they will save over $200. Furthermore, shipping and handling are done via FedEx, and the costs are included in the price of the gold bar, making it completely hassle-free.
However, there are some disadvantages to buying gold from Costco. As per Money Talk News, while purchasing is hassle-free, storing the gold bar isn't. Shoppers may think their bars would be covered under their home insurance, but in most cases, they won't be. Furthermore, selling could be a problem, as per CNBC, and no returns/refunds are accepted for gold, despite Costco's generous policy. Lastly, shipping isn't nationwide, as members in Nevada and Puerto Rico don't have the option available.
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