Costco's Golden Touch: Gold Prices Soar 58%, Outpacing SPY Since It Started Selling Gold 33 Months Ago

Ladies and gentlemen, buckle up! We're diving into the world of gold and the retail giant that's making waves in the precious metals market. Costco, the beloved warehouse club, has struck gold—literally! Since they started selling gold bars 33 months ago, the price of gold has skyrocketed by 58%, leaving the S&P 500 in the dust. Let's break down why this is a game-changer and what it means for your portfolio.

First things first, let's talk about the elephant in the room: GOLD IS ON FIRE! The spot price of gold has been on a tear, hitting new all-time highs and continuing to climb. As of February 27, 2025, gold is up over $250 per ounce since the start of the year. This is a no-brainer—gold is the ultimate safe-haven asset, and investors are flocking to it like never before.

Now, let's talk about Costco. This isn't your average retailer; it's a powerhouse with a reputation for quality and competitive prices. When Costco decided to start selling gold, it was a bold move that paid off big time. The demand for gold bars at Costco has been overwhelming, with sales generating between $100 million and $200 million monthly. That's right, folks—Costco is pulling in six figures in sales each month from gold alone!

But why is gold so hot right now? Let's break it down:

1. Economic Uncertainty: The economy is shaky, and investors are looking for stability. Gold is the ultimate safe-haven asset, and its price has been soaring as a result.
2. Inflation and Interest Rates: The Federal Reserve's interest rate policy has been a boon for gold. With rates cut throughout the second half of last year, gold prices have surged. Inflation is also a concern, with headline inflation creeping up to 2.9% in December 2024. Gold is a hedge against inflation, and investors are buying it up.
3. Stock Market Volatility: The stock market has been a roller coaster, with the S&P 500 and the Dow Jones Industrial Average falling by 1.7% in a single day. This volatility has led investors to turn to gold as a hedge against potential downturns.
4. Portfolio Diversification: Precious metals like gold play a crucial role in safeguarding wealth. Their low correlation to other financial assets means they tend to move independently of stocks and bonds. This diversification has made gold an attractive investment for those looking to safeguard their wealth.

Now, let's compare this to the performance of the SPY (S&P 500 ETF) over the same period. While gold prices have surged by 58%, the S&P 500 has experienced volatility and declines. For instance, the S&P 500 fell by 1.7% in a single day, marking its worst one-day decline of the year. This volatility in the stock market has likely contributed to the increased demand for gold as investors seek stability and a hedge against market downturns.

So, what does this mean for you? If you're not already invested in gold, now is the time to act! Costco's entry into the gold market has made it easier than ever to add this precious metal to your portfolio. With competitive prices, free shipping for members, and a strong reputation for quality, Costco is a no-brainer for gold investors.

But don't just take my word for it—do your own research and make an informed decision. Gold is a long-term investment, and it's important to understand the risks and rewards before diving in. That being said, with the current economic climate and the soaring price of gold, it's hard to ignore the opportunity that's right in front of us.

So, what are you waiting for? Get out there and buy some gold! Whether you're a seasoned investor or just starting out, now is the time to add this precious metal to your portfolio. And if you're looking for a convenient and trustworthy place to buy, look no further than Costco. This is a golden opportunity, and you don't want to miss out!

BOO-YAH! This stock’s a winner!