Gold with groceries? Costco says Yes!

[Ralph Sir Edward]

Strange times indeed!

https://www.cnbc.com/2023/09/27/costco-is-selling-gold-bars-and-they-are-selling-out-within-a-few-hours.html

I never expected to see gold bullion for sale at a US standard consumer retail store. . .

 

[The Colorado Kid]

Anyone know how this compares pricewise to other options to buy gold?

 

[sponger76]

Anyone know how this compares pricewise to other options to buy gold?

Looks like just slightly above spot price. The article quoted Costco price as just shy of $1,900/ounce, while the spot price at the time was $1,876.56/ounce.

 

[Ralph Sir Edward]

Do they make you pay cash? Or credit card?

 

[1Kflyerguy]

Do they make you pay cash? Or credit card?

they are selling these online, so i would guess they accept credit cards..

Though when I searched Costco for gold bars, they suggested "Autumn Gold Granola bars...

The article mentions they sell out quickly

 

[Carolinian]

Interesting, but I will stick with my usual sources. Right now I can buy the French Napoleon III 20 franc gold pieces, containing about 2/10s of an ounce of gold for about 4% over spot.

 

[Ralph Sir Edward]

Interesting, but I will stick with my usual sources. Right now I can buy the French Napoleon III 20 franc gold pieces, containing about 2/10s of an ounce of gold for about 4% over spot.

Carolinian, I wasn't suggesting anybody use Costco, merely that selling gold in such a place is a major break into the US mainstream. In Europe, it has always been the mainstream. Not in the US.

 

[frast]

Anyone know how this compares pricewise to other options to buy gold?

Price is slightly higher then others that's what i have heard..

 

[easyrider]

It would have been a easy way of racking up air miles was my first thought.

Bill

 

[TolmiePeak]

It would have been a easy way of racking up air miles was my first thought.

Bill

Buying them is the easy part. Selling them is hard.

 

[easyrider]

Buying them is the easy part. Selling them is hard.

It kind of is because of the premiums. The spread would need to go up or down enough to pay the premium to sell elsewhere. I read that Costco will sell 5 tubes of 1 ounce Maple Leafs so 100 ounces plus premium. That's like 250,000 air miles. If money were made there would be a short term capital gains to pay which is fine because the play is air miles but has the potential to be profit too.

Bill

 

[Brett]

Buying them is the easy part. Selling them is hard.

yep

The Headache at the End of the Costco Gold Rush​

https://www.wsj.com/finance/investing/selling-costco-gold-bars-f14e966f

"selling gold is not as easy as it seems
"Many are learning the hard truth that gold isn't the most liquid asset. It's not like trading stocks."

"Though gold prices have been climbing lately they haven't historically risen with the same consistency as stocks"

"Shipping fees"

"Gold is taxed as a collectible, unlike other long term investments"

 

[TolmiePeak]

It kind of is because of the premiums. The spread would need to go up or down enough to pay the premium to sell elsewhere. I read that Costco will sell 5 tubes of 1 ounce Maple Leafs so 100 ounces plus premium. That's like 250,000 air miles. If money were made there would be a short term capital gains to pay which is fine because the play is air miles but has the potential to be profit too.

Bill

How can you make the miles worth it when the buy/ask spread plus other various fees is 10 to 15%?

 

[easyrider]

How can you make the miles worth it when the buy/ask spread plus other various fees is 10 to 15%?

The gold price has to be going up to make this work. A person might end up holding gold coins for a while. Definitely not as easy as the buying $1 coins from the bank with a credit card with a credit card which was banned.

Bill

 

[easyrider]

yep

The Headache at the End of the Costco Gold Rush​

https://www.wsj.com/finance/investing/selling-costco-gold-bars-f14e966f

"selling gold is not as easy as it seems
"Many are learning the hard truth that gold isn't the most liquid asset. It's not like trading stocks."

"Though gold prices have been climbing lately they haven't historically risen with the same consistency as stocks"

"Shipping fees"

"Gold is taxed as a collectible, unlike other long term investments"

I think that when precious metals go main stream, if this is what's actually happening, it's a clue that the price might continue to rise because of demand.

Brett, you might be on to something regarding selling physical gold. I haven't really thought about it much but this headache might be why many people never sell.

Bill

 

[Ralph Sir Edward]

Liquidity is a spectrum. Real estate, for example, is not a liquid asset. That doesn't make it an inherent bad investment, but an investment that really is profitable only in the long term.

Gold is more liquid than real estate, but less liquid than other popular investment options.

 

[pedro47]

We liked investing in land because God, is not making in more new land or continent's. IMO

EXAMPLE: Water front properties on OBX, NC that wants sold for $6000.00 dollars in 1985, is now selling $100,000 dollars.

 

[TolmiePeak]

We liked investing in land because God, is not making in more new land or continent's. IMO

EXAMPLE: Water front properties on OBX, NC that wants sold for $6000.00 dollars in 1985, is now selling $100,000 dollars.

Why would anyone buy waterfront property on the Outer Banks of North Carolina? Coastal erosion claims several houses per year. No one will sell you insurance on those properties which means you won't be able to get a loan from a bank.

 

[TolmiePeak]

We liked investing in land because God, is not making in more new land or continent's. IMO

EXAMPLE: Water front properties on OBX, NC that wants sold for $6000.00 dollars in 1985, is now selling $100,000 dollars.

Isn't the value of these houses zero????

Google Maps

Find local businesses, view maps and get driving directions in Google Maps.

www.google.com

 

[SteveinHNL]

We liked investing in land because God, is not making in more new land or continent's. IMO

EXAMPLE: Water front properties on OBX, NC that wants sold for $6000.00 dollars in 1985, is now selling $100,000 dollars.

Plus land generally provides income even as the underlying value increases.

 

[TolmiePeak]

The gold price has to be going up to make this work. A person might end up holding gold coins for a while. Definitely not as easy as the buying $1 coins from the bank with a credit card with a credit card which was banned.

Bill

The best loophole was when the US Mint was selling the Susan Anthony Dollar coins with free shipping and allowed you to pay with a credit card. People listed their bank as the delivery address. I'm sure the UPS drivers hated dropping off thousands of pounds of coins at a bank.

 

[dioxide45]

Isn't the value of these houses zero????

Google Maps

Find local businesses, view maps and get driving directions in Google Maps.

www.google.com

I see many others that aren’t. You are looking at the exception rather than the rule.

 

[dioxide45]

The best loophole was when the US Mint was selling the Susan Anthony Dollar coins with free shipping and allowed you to pay with a credit card. People listed their bank as the delivery address. I'm sure the UPS drivers hated dropping off thousands of pounds of coins at a bank.

I believe it was presidential dollars. They weren’t shipping the bank but were just taking them in for deposit. That only lasted for a few years before the ended it.

 

[pedro47]

Why would anyone buy waterfront property on the Outer Banks of North Carolina? Coastal erosion claims several houses per year. No one will sell you insurance on those properties which means you won't be able to get a loan from a bank.

Have you ever attempted to rent an oceanfront home on OBX from May until September.?

 

[TolmiePeak]

I see many others that aren’t. You are looking at the exception rather than the rule.

Looks like they had to spend tens of millions of taxpayers dollars to relocate the main highway on a causeway over the inland bay because it washed out.