Sold Over 130 Billion Won... The 2.7 Million Won 'Gold Bar' Flying Off the Shelves at Costco

Expectations for Gold Price Increase Following Interest Rate Cut

A local report stated that gold bars are selling like hotcakes at Costco, a warehouse-style retail store in the United States.

On the 15th (local time), the U.S. economic media CNBC reported that Costco sold more than $100 million worth of gold bars in the first quarter of the fiscal year that ended last month.

Photo by Gold bar sales page on the US Costco website

Richard Galanti, Costco's Chief Financial Officer (CFO), revealed during the earnings conference call the previous day that in the first quarter of the fiscal year ending last month, they sold over $100 million (approximately 130 billion KRW) worth of precious metals, most of which were gold bars.

The representative gold bar product sold at Costco is the 1-ounce bar. When the sales post was uploaded on the website last September, the prepared quantity sold out within a few hours. On that day, Costco sold this product for $2,069.99 (about 2.7 million KRW). The product reviews for this gold bar on the website have a rating of 4.8 out of 5 stars. Most responses are positive and express satisfaction.

Expecting a sellout, Costco limited the purchase of gold bars to two per membership. The media also added that unlike other general products at Costco, gold bars are non-refundable, which customers should be aware of.

Recently, gold prices have reached an all-time high in 3 years and 4 months, raising expectations for a "super rally." Even after surpassing $2,000 per ounce, the rally continued with breakthroughs over $2,100, drawing attention to whether a new record of $2,500 will be set. Market experts expect the high gold prices to continue for the time being.

U.S. bank JP Morgan forecasted in a precious metals price outlook report released earlier this month that gold prices will rise to $2,300 per ounce (approximately 2.999 million KRW) next year, anticipating future interest rate cuts.

The rise is interpreted as influenced by the growing expectations of interest rate cuts by the U.S. Federal Reserve (Fed), which weakened the dollar and lowered U.S. bond yields. Additionally, the resumption of war between Israel and Hamas has contributed to instability in the Middle East, which is another factor driving gold prices up. The increase in gold purchases by central banks in China, India, and other countries is also a factor in the rising gold prices.

This content was produced with the assistance of AI translation services.