I was interested to read that the US ‘big box’ retailer Costco has been selling silver and gold bars to its members and is planning to add platinum as an option. It sells with what is thought to be a very minimal ‘cut’ (said to be 2%) because its business model is based on the ‘warehouse club’ membership fees it collects.
When Costco secures for sale a supply of small gold bars, they sell out immediately. It is reported that they sell $200 million worth every month.
This model will likely be copied elsewhere and to me it is an interesting potential tailwind for the price, as we have in gold a commodity with a known limited supply and, aside from the jewelry and consumer electronics uses, not much of a history of mass market purchases in the West. I do recall the temporary fad for buying Krugerrands at 1oz when I was boy – my father showed me one. Sadly, he did not keep it because even since the turn of the millennium, gold prices have risen 800% or so.
Gold is of course a commodity in technical terms, but I was not aware that it had become a household commodity!
You can buy gold in the UK via a FinTech Mastercard debit card account from Glintpay if that interests you, at a lower cost. However, do not assume that I am recommending such an investment. Gold is a legitimate long-term asset to own, but you need to understand its specific characteristics and the associated risks, as ever.
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