As gold hits new records, you can now buy it at Costco — but should you?

With gold prices hitting record highs and everyone talking about inflation hedges, you may be ready to jump on this glittery bandwagon. But here’s a twist you might not expect: one of the hottest places to buy gold isn’t a precious metals dealer or coin shop with endless TV ads — it’s your local Costco.

It might sound like an odd choice, but this warehouse club giant has quietly transformed into an unlikely gold powerhouse, reportedly moving an estimated $100 million to $200 million in precious metals monthly since launching gold sales in 2023. That’s serious volume for a company known more for bulk toilet paper than bullion.

But does buying gold next to rotisserie chicken and Kirkland Signature olive oil make financial sense? Here’s what you should know before adding gold bars to your Costco cart.

The Costco gold rush is real

The numbers are pretty wild: A one-ounce gold bar that cost around $2,635 at Costco last September would be worth a whopping $3,800 today — an unrealized gain of $1,165, or about 44.2%. Not too shabby for something you could pick up between your 24-pack of paper towels and frozen berries.

But while gold’s recent rally has been remarkable, those types of gains aren’t typical. Gold has historically averaged around 7% to 8% over the long term, with a lot of volatility along the way.

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What’s actually in the cart

Costco sells a range of precious metals, including reputable brands like PAMP Suisse Lady Fortuna Veriscan Gold Bars, Royal Canadian Mint Gold Bars and Argor Heraeus Goldseed, depending on availability.

The membership club reportedly marks up its precious metals by roughly 2% over the spot price — or the real-time market value of one troy ounce of pure gold.

That 2% markup is pretty competitive compared to traditional dealers who often charge 5% to 10% or more. If you’re a Costco Executive member or paying with a rewards credit card, the cash back you earn on your purchase helps offset the premium.

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But first, the reality check

Before you start planning your golden retirement at Costco, let’s address the practical realities. To even browse prices, you’ll need to be a member — that’s $65 annually for the basic Gold Star membership, if you don’t already have one.

Purchase restrictions have also tightened. While limits appear to have changed over the past few months, Costco’s gold listings now include this note:

Unlike most Costco purchases, precious metals are nonrefundable, so there’s no returning it — as you can with some dealers — if you have second thoughts.

Perhaps more importantly, availability is unpredictable. Gold bars sell out within hours of going live on Costco’s website, and they can be hard to find in store. It turns out that actually getting one requires not just money and timing, but also a bit of luck.

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Selling could be the harder part

Unlike stocks or crypto that you can liquidate instantly online, physical gold is an asset that requires a willing buyer. And Costco doesn’t offer buy-back services, leaving you on the hook for finding your own.

When you’re ready to sell, expect dealers to offer 5% to 10% below the spot price, regardless of whether you sell online or at a local precious metals shop. Also factor in shipping and insurance costs for online transactions (though reputable dealers often cover these expenses up to certain dollar amounts).

Word to the wise: Avoid platforms like eBay or Facebook Marketplace, where precious metals scams are rampant. Instead, work with established online dealers like APMEX or JM Bullion or vetted local coin shops with solid reviews.

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The tax trap nobody talks about

Here’s the tax surprise that catches many gold investors off guard: The IRS treats physical gold as a collectible, and not an investment asset. That means any profits are taxed at ordinary income rates of up to 28%, rather than more favorable long-term capital gains rates you get with stocks.

So, if you buy a gold bar today and want to cash in on those gains down the line, Uncle Sam will want his cut — and potentially at your highest tax rate. The tax difference can significantly eat into your actual returns, dimming gold’s shine.

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Now, should you actually do it?

Buying gold at Costco isn’t a bad move if you’ve decided on physical gold. Pricing is competitive, the company is trustworthy and you might even earn rewards on your purchase. To make physical gold a part of your investment strategy, Costco is as good a place as any to buy it.

That said, it’s always worth shopping around. Compare prices at established dealers online, and visit local coin shops to see their markups and buy-back policies. After all, your exit strategy is also important to consider.

And explore the alternatives: If you want to invest in gold without the storage headaches, gold mutual funds and ETFs might be worth considering. They’re more liquid, easier to sell and you won’t need to worry about how to safely store your chunk of metal at home.

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Our take: Is Costco gold worth it?

Costco’s gold bars offer a legitimate way to buy physical precious metals at competitive pricing, but don’t expect them to make you rich overnight. If you understand the tax implications, can handle the storage challenges and want physical gold to diversify your portfolio, Costco is a reasonable place to buy your gold. Just remember that gold is a volatile asset, and you could end up losing money if prices drop.

Editorial disclaimer: Information on this page is for educational purposes and not investment advice or a recommendation to buy any specific asset or adopt any particular investment strategy. Independently research products and strategies before making any investment decision.

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About the writer

Kat Aoki is a finance writer who’s written thousands of articles to empower people to better understand technology, fintech, banking, lending and investments. Her expertise has been featured on sites like Lifewire and Finder, with bylines at top technology brands in the U.S. and Australia. Kat strives to help consumers and business owners make informed decisions and choose the right financial products for their needs.

Article edited by Kelly Suzan Waggoner

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