Everyone’s buying gold bars from... Costco: Sale of precious metals drives up company’s e-commerce arm

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Louise Thomas

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Costco customers have been flocking to buy gold and silver from the big box company, helping to boost their e-commerce sales this past quarter.

“Total e-commerce sales growth in the quarter was led by gold and silver bullions, gift cards and appliances,” Chief Financial Officer Gary Millerchip told investors Thursday, per NBC News.

The membership-based company also reported a 20.7 per cent rise in online sales during the third quarter and first 36 weeks of the fiscal year 2024.

The company has seen this trend grow over several months. In October, Mr Millerchip told investors that gold bars were “typically gone within a few hours” after appearing on the site as buyers flocked to buy them up.

The company was forced to put a limit on the number of bars per buyer to ensure there was enough to go around.

Jonathan Rose, CEO of precious metal broker Genesis Gold Group, told the Associated Press last year that the sales may have been driven by inflation and individuals’ concerns about the US dollar.

Meanwhile, even as food prices skyrocket throughout the US, Mr Millerchip also said the infamous $1.50 hot dog deal is safe and sound during that same Thursday call.

“Oh, and to clear up some recent media speculation, I also want to confirm the $1.50 hot dog price is safe,” Mr Millerchip said.

Former Costco CEO Jim Sinegal has jokingly warned his successor, Craig Jelinek, to keep the hot dog at the $1.50 price at all costs.

“I came to [Mr Sinegal] once, and I said, ‘Jim, we can’t sell this hot dog for a buck fifty. We are losing our rear ends.’ And he said, ‘If you raise the effing hot dog, I will kill you. Figure it out,” Mr Jelinek has previously recalled.

Mr Millerchip also told investors Costco is seeing growth in discretionary item purchases, including toys, tires, lawn and garden and health and beauty.

The Independent has contacted Costco for comment.