Costco seems to be tapping into a lucrative market with its gold bar sales, as survey results indicate that many warehouse locations are struggling to keep them in stock.

A recent Bloomberg survey found that 77% of the 101 Costco stores observed in early October were completely out of gold bars, according to a report shared on Monday.

In a call discussing the fourth quarter earnings, Costco’s CEO Gary Millerchip noted that gold sales significantly boosted online comparisons. An April report from Wells Fargo suggested that the retailer is moving approximately $100 million to $200 million worth of gold every month.

Previous estimates from YSL News indicated that Costco’s monthly sales ranged from 50,000 to 100,000 ounces of gold, as per Wells Fargo’s analysis.

Gold Prices Stay High Amid Decreasing Inflation

As a traditional hedge against inflation, gold has remained close to its peak prices, having surged by 30% this year, even though inflation rates have eased.

While Costco thrives, other segments of the gold market have seen declines. Notably, sales of American Eagle gold coins—which are often viewed as an indicator of retail gold purchases—plummeted by 64% between January and September 2023, according to data from the US Mint.

Zachary Scott, the general manager of Wilshire Coin in Santa Monica, California, mentioned to YSL News in April that he is attracting a “different type of customer” after they learned about Costco’s trustworthy gold offerings.

“This has sparked interest among new buyers, even if not in large numbers, largely due to the articles highlighting Costco’s gold sales,” Scott explained.

Costco Expands Offerings with Platinum

Following the success with gold, Costco has now introduced platinum to its precious metals selection.

The platinum bars, priced at $1,089.99, are available exclusively for online purchase.

These new platinum bars are 999.5 pure and are produced in Switzerland. The refiner also holds the Good Delivery accreditation from the London Bullion Market Association, a key global authority in the precious metals space, according to company information.