Costco Gold Bars vs. Online Bullion Dealers: Navigating Your Investment Options
You probably saw the 2023 headline that Costco sold over $100 million in gold bars during a three month period. This was major news in the precious metals and wholesale industries.
As countries worldwide competed to increase their gold reserves, people began racing to buy more gold.
A few Costco stores sold out rather quickly, prompting Costco to respond by placing a limit of two one-ounce bars per customer. As long as a person has a Costco membership, they can go to a store location and buy a one Troy ounce gold bar.
Some people began to question whether or not buying gold bars from Costco was even a good deal, or whether they could uncover other opportunities elsewhere.
For an array of reasons, online precious metals retailers are likely a better choice when buying gold.
Whether a person is just getting started investing in precious metals or they are a seasoned investor, the price of a one-ounce gold bar is not the only thing to look for.
First, not everyone has a Costco membership, which often has its own price tag. Second, not everyone can afford to buy a one-ounce gold bar whenever they desire.
So far, in 2024, the spot price for gold has averaged a little over $2,000 per troy ounce. Not everyone is capable of spending that much money at the local grocery store or membership warehouse club.
While the more wealthy club members may want to buy more than two gold bars at once. With the 2 bar limits set by Costco, some customers may wish to buy in larger bulk quantities to get a better wholesale price.
The alternative to these limitations is to buy from an online retailer that does not have an annual membership fee and offers a wider selection of gold investment items.
With an online precious metals dealer, a person can not only get a live price, but they can also buy in smaller or larger sizes and quantities that better fit their financial and investing needs. This provides a lower barrier to entry into investing in precious metals such as gold.
A person who wants to get started buying gold can choose from a selection of smaller-sized gold bars such as a half-gram, 1-gram, 2.5-gram, 5-gram, 10-gram, 20-gram, or 25-gram.
Or they choose to buy gold rounds, which look like gold coins but are privately minted without a face value instead of a legal tender currency minted by the U.S. Mint.
For wealthier shoppers, they can choose to buy larger-sized gold bars like a 5-ounce, 10-ounce, or kilo (32.15 oz).
With an online dealer, a person can choose to buy in the quantities that fit their needs, no matter the quantity of gold grams or gold ounces desired.
Beyond the number of gold bars desired or the total weight of gold items a person wishes to buy, purchasing precious metals through an online retailer allows for a more diverse array of products to choose from.
Diversifying a precious metals portfolio enables a person to enjoy the benefits of returns on investment in multiple metals when they own more than one. Instead of buying all gold bars or gold rounds, they can also buy silver, platinum, palladium, and rhodium.
If cost is an issue again, silver has a much lower barrier to entry with silver spot prices hovering around $23 per troy ounce. Silver enables an investor to better budget their investments since it has more fractional options.
An important final aspect of buying gold and other precious metals from an online dealer is their underlying values and how those are upheld in the business model.
A dedicated precious metals dealer will not use high-pressure sales tactics, will not try to forcefully sell “rare” coins, and their customer service will be commission-free. A good precious metals dealer will act with integrity and care when helping customers make the right decision.
This means when you contact an esteemed online precious metals dealer, you are able to ask questions and receive real answers that help along the process of buying or even selling your precious metal items.
So, yes, some people can buy a couple of one-ounce gold bars at Costco, but that does not mean it is the right choice for everyone — and there are likely better deals and more value added benefits in working with the right online precious metals dealer.
