Gold has been a popular commodity for thousands of years, but in the modern era, it’s not considered currency in the traditional sense. Costco sells millions of dollars worth of gold bars every month, with supply selling out quickly whenever it’s released for sale. Shoppers are drawn to the allure of a hard-to-get item, created by the out-of-stock notices that accompany each batch.
However, buyers are discovering that trading gold bars can be more complicated than they anticipated. Unlike stocks, selling gold bars involves a friction between what was paid and what is received. It’s not as simple as finding a buyer who will pay the desired price, as some shoppers have learned the hard way.
Gold bars are classified as collectibles by Costco and the IRS, which may or may not retain their value over time. The IRS may demand a 28% cut of any profits made on gold held for over a year. With additional expenses like interest, taxes, shipping, and the hassle of finding a buyer, trading gold bars may not be worth the trouble, even at Costco prices. Despite this, Costco continues to move large amounts of gold bars and silver coins each month, with estimates around $200 million.
