Quote of the Day
Gold has turned into money for Costco, where yellow metal sales begun last year have turned into a cash cow for the big-box retailer.
In fact, sales are so brisk that analysts at Wells Fargo expect revenue “may now be running at” $100 million to $200 million a month, a rapid acceleration since bullion hit the warehouse club late in the summer of 2023.
Jeff Cox
April 9, 2024
Costco selling up to $200 million in gold bars a month, Wells Fargo estimates (cnbc.com)
I wonder if this has been a significant factor in the recent price of gold. At $2,300/oz that is something like 40k to 65K ounces a month.
First time I tried to buy gold I discovered that sales tax would be added. That amounts to 5% – 8% or so meaning that you won’t make a profit on this investment until gold prices have increased enough to cover the sales tax.
So I decided to mail-order (via internet) gold, which added shipping charges to the purchase price, which was less that sales tax, but still not negligible (this was before online sales were taxed by those states with a sales tax). So currently mail-ordering gold will add both shipping and tax.
Now I buy my gold (with cash) when I visit a state without a sales tax.
There’s at least one state that exempts gold from state sales taxes, similar to how other states might exempt unprepared food.
Then more you know 🌈⭐
There is no sales tax on gold or silver in Washington state or Idaho.
What’ll be interesting is when they accept gold at the front door at the day’s pricing to count against the bill at check-out.
Or they just skip the middle steps and re-price everything in the store in terms of grams of gold, and you just momentarily buy that much gold at checkout if you haven’t enough gold on hand to settle the bill.
Over forty thousand ounces a month. Hedging inflation has gone mainstream. That’s a lot of ears pricked up.
At least the government hasn’t started requiring a background check to buy it yet. (The idea of Interstate commerce and government being what they are these days.)
Wonder how much is being purchased with cash?
They only sell it online. So that means no cash sales.
HAHAHAHAHA! Oh, that certainly sets the stage, doesn’t it?