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Daily Updates | Why There’s a Gold Rush at Costco: Shoppers Flock for Unbeatable Deals

Why There’s a Gold Rush at Costco: Shoppers Flock for Unbeatable Deals

Gold Rush at Costco

Costco Cart's seen an unusual product many times in the past weeks; this time, it's not toilet paper. It's a Gold bar, Shocked?

Membership-only warehouse chain Costco, which is popular for its $1.50 hot dog and soda deal, is seen selling 1-ounce gold bars, and people are going crazy about it. The one-ounce gold bar is a new offering on the Costco website, and it has shown a crazy demand; it's almost out of stock after every few hours of adding it up to the stock on the website. The official website has added a limit of 2 pieces per person to make it fair for everyone.

Costco CFO Richard Galanti said. "When we load them on the site, they're typically gone within a few hours, and we limit two per member."

The most exciting thing to observe is that the price of these gold bars is on a higher side than the actual market rate. Even though Costco is known for its discount deals, people buying the gold bars at even higher prices is a shock to everyone. Experts believe that it boils down to the interest of common people in stocking the precious metal, which is evident from the last few months. The interest isn't going anywhere if it continues to ride the upside wave. 

What's the reason behind people's interest in gold?

People's interest in metals like gold usually shoots up during times of uncertainty. When people aren't sure about the economy's growth for a certain period, they choose a much safer option like gold to invest their money.

"If someone's going out to buy gold, that means they think that there's some type of instability at the structural level of the market and the government itself," added David Wagner III, head of markets and equities at Aptus Capital Advisors.

The other external factor that intriguing uncertainty is the tense situation between Israel and Palestine. The constant war-like situations are making people speculate global uncertainty.

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What makes gold a worthy investment?

Gold is a safer investment option. People love investing in gold as its price is not directly related to stocks, bonds, or temporary economic changes. It's a great option to diversify the wealth to keep it safer, especially during uncertain times.

Gold typically acts as an investment shield for Investors, especially during economic downturns. Experts recommend diversifying a portfolio with gold's weightage of 2-10% in their portfolio wealth as a healthy option. Gold can reduce the portfolio's volatility, resulting in higher returns adjusting to the risk involved.

Although there are experts advocating the other side of it, who claim it's not a great option to go with gold as an investment, people can never make real money out of it. So, ultimately, it depends on an Individual's research and risk appetite to invest in gold as an option to diversify their portfolios to seek higher returns. 

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