Gold has been a popular commodity for thousands of years, but in the modern world, it is not considered currency in the traditional sense. Despite this, Costco sells millions of dollars worth of gold bars every month, with supply selling out quickly whenever it is released for sale. Shoppers are drawn to the allure of a hard-to-get item, as out-of-stock notices create a sense of urgency.
When Costco releases a batch of gold bars for sale, they typically sell out within hours as shoppers buy the precious metal at a small markup over its spot price. However, buyers are soon realizing the complexities involved in trading commodities after purchasing gold bars from Costco. Unlike stocks, selling gold bars involves a friction between what was paid and what is received. It is not as simple as finding a buyer who will pay the desired price. Some shoppers have learned this lesson the hard way.
Gold bars are classified as collectibles by both Costco and the IRS, which means that their value may or may not retain over time. The IRS may demand a 28% cut of any profits made on gold held for over a year. With additional expenses like interest, taxes, shipping, and the hassle of finding a buyer, trading gold bars may not be worth the trouble even at Costco prices. Despite this, many shoppers continue to purchase gold bars from Costco each month due to their perceived value and rarity.