CostCo Selling 100gm Gold Bars!
CostCo Selling 100gm Gold Bars! by Dan Atkinson For The Mail On Sunday
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- Bulk-buy specialist Costco is now offering bars of gold for up to £24,500 a time
- Experts warned people could be getting a poor deal after swings in gold market
- The price of gold has risen 28 per cent in past 12 months, but it’s a volatile market
It’s not an item likely to be on the weekly shopping lists of many households – but one supermarket giant has started selling gold bullion alongside its everyday groceries.
Bulk-buy specialist Costco, more normally known for its ‘pile-’em-high, sell-’em-cheap’ philosophy, is now offering bars of the precious metal for up to £24,500 a time.
But experts last night warned shoppers they could be getting a poor deal, particularly after violent swings in the gold market this year.
While the company’s mark-up on gold is up to seven per cent on the market rate, it is also selling silver bars at a whopping 28 per cent premium.
Many investors have been turning to what they see as the security of gold this year, amid huge uncertainties in the world economy caused by Covid-19, international tensions and political discord in America.
But while the price of gold has risen by 28 per cent in the past 12 months to almost $1,900 (£1,469) an ounce, it is a volatile market, declining by more than six per cent in the past two months alone.
Professor Trevor Williams, an economist at St Mary’s University, London, warned: ‘Gold is an investment product and people should be wary about buying it. Some say it holds its value, but that is not true – it can move up and down quite markedly.’
On September 24, Costco’s 100g bar was on sale for £4,939.99, when the market price for that much gold was £4,619.70 – equal to a seven per cent mark-up in store.
It also had a 50g bar of gold that day for £2,442.99 (six per cent higher than market rates) and a 500g bar at £24,549.99 (6.5 per cent).