Costco gold bars continue to sell out. Should I buy it?

Costco began selling gold bullion online last year and it has been very popular with customers. Shortly after the retail giant began selling gold, Richard Galanti (Costco CFO at the time) told investors that one-ounce gold bars typically disappear within hours of being posted to the site.

Gold bars at Costco may be flying off the shelves (online), but the fact that so many people are doing something doesn’t always mean it’s a good idea. If you’re wondering whether you should buy, there are two questions to consider. Is Gold the Right Investment for You? So, what’s the best way to purchase it?

Is gold a good investment?

If you’re considering buying gold bars at Costco, think of it as an investment. Investments are assets such as stocks, bonds, real estate, and other instruments that can help you build long-term wealth. Of course, you can’t just put the stock in your Costco cart. how about you ~can do You can earn Costco credit card rewards when you buy gold bars, which is almost impossible with stocks. Nonetheless, this is money you are investing for your future.

So research how gold can perform compared to other assets and consider how gold fits into your investment goals. As an investment, gold can be a way to diversify your portfolio. Many people consider gold to be a good store of value during turbulent times. This is because gold performs better than stocks, especially during economic downturns.

Some see it as a hedge against inflation. The money in your bank account retains its value even if you lose spending power. For example, if you live in a country like Venezuela (which had inflation of nearly 1,000,000% in 2018), you might feel that gold is a safer way to store your money.

But owning gold is more complicated than holding money in the bank or stocks in a brokerage account. First of all, if you purchase physical gold, you will need a place to store it. You’ll probably want to get insurance. When you want to spend, it’s not as easy as a bank transfer. First you need to find a place to sell gold. You may lose money due to commissions and spreads.

Lastly, that gold won’t be stored in a vault giving birth to little gold babies. Stocks can pay dividends, and money in a savings account can earn interest. Your gold only makes a profit if you can sell it for a higher price than you bought it for.

From one perspective, the price of gold will go up and down. Historically, the price of gold has been have There is an upward trend, but there are no guarantees as prices are at record highs. It’s also worth mentioning that the S&P 500 has performed better over long periods of time. Gold prices often rise during times of economic uncertainty, but if you’re a long-term investor, investing your money in the stock market is often a better option.

What is the best way to buy gold?

Once you’ve decided you have room for gold in your portfolio, think carefully about how you want to buy it. Costco has made gold bars convenient, but spending about $2,000 on actual bars is a lot of money. Costco Gold can only be purchased online and is available to members only.

There is a certain appeal to owning physical gold that you can touch. You can also own gold jewelry or coins, although it requires a good understanding of the market. Ultimately, unless you’re Gollum guarding precious gold. lord of the ringsHolding physical gold as an investment can cause it to lose its luster.

If you don’t want to worry about the hassle of storage, insurance, and reselling, consider buying stock in a gold mining company instead. You can also invest in gold ETFs or mutual funds. Some provide exposure to blended gold companies, while others hold physical gold. There will almost certainly be fees, but it is much easier to buy and sell stocks than gold bullion.

conclusion

There are many ways to save money when you shop at Costco. But as an investment, Costco’s gold bars only make sense for a limited number of people. Even if you want to add gold to your portfolio along with other investments, owning physical gold is a difficult way to build wealth.

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