Costco is a common name for the US people and there are a ton of memes on how any household will be spending large amounts at the store even though they did not want to. The warehouse giant has been attracting precious metal buyers for the last few months with the 1-ounce gold bars and now it seems the demand went so high that more than 77 percent of Costco outlets were sold out of Gold.
Costco has been selling the 1-ounce gold bars and the item became popular within no time. The initial demand was so high that the gold bars sold out quickly and the warehouse quickly restocked its online inventory but was limited to select stores. Now Costco started selling platinum bars but the gold bars remain as popular as ever. Why is there so much demand for gold bars?
There are multiple reasons behind the high demand for gold.
One of the primary reasons is its remarkable price performance so far this year. Gold started at $2063.73 per ounce this year and it went up to $2650 per ounce, which is a 30% increase in 2024. The predictions say that Gold will hit $3000 per ounce very soon. The seasoned investors are putting their money into physical gold now.
Stock market volatility is another reason for the huge demand for gold. Gold is known to withstand the financial market distress and historically gold prices tend to rise when stocks fall. This made gold an attractive option. Stock portfolio diversification is another reason for gold investments.
The analysts’ expectation of further price growth indicates this demand for physical gold will become bigger soon.
Needless to say Indians have a special penchant for gold. Earlier who used to buy the 24 karat gold coins or bars like Maple leaf online and other stores are heard to have started spending the money at Costco for the same.
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