Did you know Costco, the wholesaler known for bulk goods and $1.50 hot dogs, also sells gold bars? Since 2023, it's offered 24-karat gold from reputable refiners such as PAMP Suisse and Rand Refinery.
With premiums far lower than many traditional dealers, members buy millions of dollars' worth of gold each month, both online and at select Costco stores.
According to former CFO Richard Galanti, one-ounce gold bars usually sell out "within a few hours" of being listed, prompting the company to set strict buying limits.
How to buy Costco gold bars
Customers on Costco.com can purchase 1-ounce, 24-carat Lady Fortuna gold bullion bars from PAMP Suisse and 1-ounce, 999.9 fine gold minted bars from South Africa's Rand Refinery. Both come with assay cards for authenticity, with a limit of 1 transaction per membership and a maximum of 4 units per 24 hours. (Sales are non-refundable and delivery to Nevada is not available.)
Costco's premiums are highly competitive: Typically, the store only charges 1% to 2% over the spot price, compared to 5% to 10% from traditional dealers.
Members can also earn generous rewards when they buy precious metals, including 2% cash back with the Costco Anywhere Visa® Card by Citi and an additional annual 2% reward (up to $1,250) if they have a Costco Executive Membership.
The Costco Anywhere Visa® Card by Citi is a valuable card to pair with a Costco membership, but the rewards program is more restrictive than what you get with a typical cash-back card.
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Discover one of Citi's best cash back rewards cards designed exclusively for Costco members
- Earn 5% cash back rewards on gas at Costco and earn 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter.
- 3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel.
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
- No annual fee with your paid Costco membership and enjoy no foreign transaction fees on purchases
- Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico
Balance transfer fee
5% of each balance transfer; $5 minimum
Foreign transaction fee
None
Pros and cons of investing in gold bars
While physical gold can provide security in a volatile market, it also has downsides.
- Diversification. Depending on your cash flow needs and time horizon, precious metals can help diversify a portfolio that's primarily tied up in one asset class.
- Hedge against inflation. When inflation reduces the buying power of paper money, gold often becomes an attractive alternative
- Safe haven in an uncertain economy. The supply of gold is limited and it can be easily traded internationally, both of which make it attractive during volatile periods.
- Hard to sell. Physical gold is harder to liquidate quickly or in small amounts.
- Difficult to store. Keeping gold bars at home poses a significant security risk, and storing them elsewhere increases upfront costs.
- No dividends or interest. Gold bars only realize a profit if you sell at a higher price
Alternatives to gold bars
The IRS considers gold coins and bullion "collectibles," like artwork or jewelry, so they can't be put in a traditional IRA. Instead, gold IRAs are overseen by broker-dealers but provide the same tax benefits.
You can also invest in gold stocks, futures and exchange-traded funds (EFTs). Charles Schwab sells gold futures and other precious-metal securities in fractional shares, so you can invest up to a set dollar limit rather than pay for whole shares.
Charles Schwab
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for active investing through Schwab One® Brokerage Account. Automated investing through Schwab Intelligent Portfolios® requires a $5,000 minimum deposit
Fees
Fees may vary depending on the investment vehicle selected. Schwab One® Brokerage Account has no account fees, $0 commission fees for stock and ETF trades, $0 transaction fees for over 4,000 mutual funds and a $0.65 fee per options contract
Bonus
None
Investment vehicles
Robo-advisor: Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ IRA: Charles Schwab Traditional, Roth, Rollover, Inherited and Custodial IRAs; plus, a Personal Choice Retirement Account® (PCRA) Brokerage and trading: Schwab One® Brokerage Account, Brokerage Account + Specialized Platforms and Support for Trading, Schwab Global Account™, Schwab Organization Account and Schwab Trading Powered by Ameritrade™
Investment options
Stocks, bonds, mutual funds, CDs and ETFs
Educational resources
Extensive retirement planning tools
Terms apply.
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FAQs
Can you buy gold at Costco?
Yes, Costco sells authentic 24K gold bars and coins from select suppliers in a variety of designs, weights and sizes.
Do you pay taxes on Costco gold?
Yes, profits from the sale of gold are subject to capital gains tax, often at a higher "collectible" rate.
What are the disadvantages of buying gold bars?
Drawbacks to owning gold bars include security concerns, storage issues and difficulty liquidating.
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