Costco selling PAMP bars, possibly below spot sometimes

[Bimetallic]

Hi all – There's been quite a bit of media coverage of Costco selling PAMP bars online. One article claimed that the price sometimes falls under spot. They're a major discount warehouse-style retailer in the US.

Limit of two bars. They keep selling out apparently. They're 1 oz Lady Fortuna bars. Online only.

When I first heard this I thought their margins must be razor thin – retailers are used to much greater markups than bullion dealers most of the time (how dealers make it work is still a mystery to me, @LawrenceChard). So it makes sense if they are indeed falling under spot occasionally – I doubt their website supports the constant real-time price updates tracking a spot price and other variables, but who knows.

The coverage is weird. It's like buying a gold bar is unheard of, like who would buy one online, and with incompetent price comparisons. And what does this mean?

"APMEX and JM Bullion sell gold by weight, quantity and price."

By price? How do you sell something by price? Anyway, the reporters are all struggling to describe a market we take for granted. It reminds me of the recurring lesson that when the media reports on something you know a lot about, you notice severe errors. Depending on the rate, it implies they're just as bad at other topics...

[bluffer]

costco UK also sell gold bars and coins in the warehouses.  they are usually cheaper than coin shops but can be more than online dealers.  the thing is they dont do live pricing on the shop floor and maybe change the price once a day so sometimes they are behind the curve both going up and down.

 

just checked there and nothing onlien in the uk that i can see for coins or bars.

Edited October 9, 2023 by bluffer
more info

[StackemHigh]

In the UK Costco usually sell various gold and silver Bairds bars, Soveriegns and 1otz brits.

[Silverlocks]

On 08/10/2023 at 23:58, Bimetallic said:

Hi all – There's been quite a bit of media coverage of Costco selling PAMP bars online. One article claimed that the price sometimes falls under spot. They're a major discount warehouse-style retailer in the US.

Limit of two bars. They keep selling out apparently. They're 1 oz Lady Fortuna bars. Online only.

When I first heard this I thought their margins must be razor thin – retailers are used to much greater markups than bullion dealers most of the time (how dealers make it work is still a mystery to me, @LawrenceChard). So it makes sense if they are indeed falling under spot occasionally – I doubt their website supports the constant real-time price updates tracking a spot price and other variables, but who knows.

The coverage is weird. It's like buying a gold bar is unheard of, like who would buy one online, and with incompetent price comparisons. And what does this mean?

"APMEX and JM Bullion sell gold by weight, quantity and price."

By price? How do you sell something by price? Anyway, the reporters are all struggling to describe a market we take for granted. It reminds me of the recurring lesson that when the media reports on something you know a lot about, you notice severe errors. Depending on the rate, it implies they're just as bad at other topics...

I suppose they could treat it as a loss leader in the way that they treat their hot dogs and not be too fussed about a few percent here and there.

[Bigmarc]

This is a pic from October 2020 from Costco. Would have made a tenna if i bought one back then. 

[pmbug]

Quote

...
In the company’s earnings call on Thursday, CFO Richard Galanti said that Costco sold $100 million in one-ounce gold bars between July and September.

According to media reports, during the call Galanti was asked what consumer trends Costco was seeing this holiday season; he answered: "They're buying gold."

In 2020, Costco started selling gold to its U.K. members and added it to North American stores earlier this year. Members are limited to two bars from the same supplier each and according to Galanti, the gold sells out in hours.
...

https://www.kitco.com/news/2023-12-15/Costco-sold-100-million-in-one-ounce-gold-bars-in-Q3.html

[17RSB]

I should have seen this thread earlier - my partner asked if I wanted to go Costco tonight and I declined! 😅

[Chronos]

1 hour ago, 17RSB said:

I should have seen this thread earlier - my partner asked if I wanted to go Costco tonight and I declined! 😅

Doesn't matter. When your boyfriend goes there next time, go with him. Gold will still be available.

Problem solved.

[Tn21]

https://www.dailymail.co.uk/yourmoney/consumer/article-12869079/costco-gold-bars-100-million-investment.html

[pmbug]

Here in the USA, Costco has started selling 20 coin tubes of Silver Eagles via their website (which sell out almost instantly when they become available).  Are they selling silver bullion in their stores over in the UK/Europe?

[Kitalon]

I'm not sure it would work like that over here, we're facing a massive cost of living crisis and have been broke since Brexit. People have other things on their minds as they decide between heating or eating. Would be nice for those with a more disposable income I suppose.

[Stu]

4 hours ago, pmbug said:

Here in the USA, Costco has started selling 20 coin tubes of Silver Eagles via their website (which sell out almost instantly when they become available).  Are they selling silver bullion in their stores over in the UK/Europe?

There is 20% added sales tax over here so not so much of a bargain. 
They could perhaps sell a chocolate cake for £400 each with a free tube of smarties, I mean Britannias thrown in. (Smarties are similar to M&M’s)

Edited December 22, 2023 by Stu
Cultural reference

[mik]

Costco Lakeside. 16th December 2023 

[scotwasp]

9 minutes ago, mik said:

Costco Lakeside. 16th December 2023 

Oh, those silver prices, they are causing some real jealousy. I do love the shiny stuff, but with the uk vat, just not worth buying retail. 

[Petra]

7 hours ago, mik said:

Costco Lakeside. 16th December 2023 

Just shows who they have as some of their customers who can casually buy stuff like this whilst shopping for bulk toilet rolls and beans!🤔😮⛄️⛄️

[iacabu]

8 hours ago, scotwasp said:

Oh, those silver prices, they are causing some real jealousy. I do love the shiny stuff, but with the uk vat, just not worth buying retail. 

That pic is UK. £785 inc VAT

A couple of bars available online at fairly reasonable prices