There’s been a huge media push about COSTCO selling gold bars of late. In fact, the articles declare that COSTCO is selling $200 million of gold bars a month at a limit of 5 gold bars per member. Below is their current promotion. I captured the spot price at the time of pricing this item as well as what Buy Gold and Silver Safely would charge for the same item.
As you can see from the spot price above, it was $2373.10 or you paid $76.89 above spot price for the gold bars. We sell the same gold bars with free shipping at $70 over spot price. But the big difference between COSTCO and us is we buy them back at just a 1% cost.
Erin Burnett interviewed Suze Orman recently regarding the surge of sales of gold at COSTCO and Orman at least mentioned the dilemma of selling the gold bars back after buying them. Suze Orman herself said in March of 2023 that “there isn’t much upside to investing in gold right now.” Orman of course in the above video recommended buying a gold ETF instead I have written about buying gold or silver ETFs in my book and you can read the pitfalls of that by clicking here (download for free and go to page 104). Avi Gilburt from Elliott Wave Trader also has a video you can watch on the subject.
Orman also says she likes Bitcoin as a possible replacement for gold as an investment.
This is where she misses the boat completely by calling gold an investment. Gold is insurance against the dollar holdings you have, meaning all your stocks, CDs, and most everything else is priced in dollars. Gold has a proven track record of maintaining purchasing power in times of deflation (stronger dollar) or inflation (weaker dollar). There is no reason you can’t own Bitcoin mind you, but do so with money you can afford to lose. Gold always has value and always will. There were 83 crypto failures in 2023 and 74 in 2022 according to the Motely Fool. Further,
The cryptocurrency market was hit hard last year (2023), losing over $2 trillion in value since reaching its height in 2021. After the crypto market reached $3 trillion in November 2021, it dropped by close to 75% in just over a year. This decline is a big reason why numerous crypto funds, exchanges, and crypto billionaires like Sam Bankman-Fried went bankrupt.
Of course bitcoin did bounce this year to 70k+ and presently is sitting around 62k. It could go to under 40k and up to 70k again and that’s quite the swing. Meanwhile gold just chugs along like the tortoise holder of wealth that it has always been.
It’s ironic that Erin Burnett who I have documented in this video would interview anyone about gold when she admittedly knows nothing about it. In fact, the highly edited video doesn’t even show Burnett asking Orman any questions.
When it comes to buying gold, you can shop at a retailer and get a decent price and take it home with you, and have no place to sell it, or you can buy from a gold dealer with good prices and a way to sell it back should you want to sell. COSTCO isn’t going to give you any advice on when to sell your gold. This gold dealer will and the answer to that is not until at least August of 2025. We are just getting started on this gold bull run.
If you really want to get educated on buying gold, then read my book via the link above. It will answer all your questions. Also, bookmark this page or sign up for reading the articles when they come out. I have called the market over the years quite well and will continue to do so. And keep in mind, silver is still selling at a bargain price compared to gold and we should look for silver to outpace gold as an investment over the next year or so. The lowest cost silver product to buy are the one ounce silver buffalo rounds or the 100 ounce silver bars. Call 888-604-6534 for a quote. Please note you can also buy silver and gold with your IRA and I’ll be writing an article on that process soon.
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About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Disclosure:
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