Photo credit: www.entrepreneur.com
A mix of excitement and skepticism accompanied the introduction of gold bars at Costco, as some consumers eagerly made purchases while others ridiculed the move. Recent insights from JPMorgan indicate that those investing in gold may soon find themselves in a profitable position.
Amidst growing recession concerns and the ongoing complexities of the U.S.-China trade relationship, JPMorgan forecasts that gold prices could soar beyond $4,000 per ounce by the year 2026.
According to JPMorgan, the average gold price is expected to reach approximately $3,675 per ounce by the end of 2025, with an anticipated rise past the $4,000 mark by mid-2026. Furthermore, there is a projection for silver prices to increase as well, with estimates suggesting a value of $39 per ounce by year-end 2025.
When Costco began offering gold bars in 2023, the average closing price was recorded at $1,943.00, based on data from Macro Trends.
Analysts from Wells Fargo have estimated that Costco could generate between $100 million and $200 million monthly from their gold bar sales.
Business Insider highlights that Costco is known for offering gold at competitive prices with some of the lowest markups in the industry.
The market dynamics often shift faster than Costco can adjust its pricing. Recently, a 1-ounce gold bar was priced remarkably near the spot market value, allowing Costco Executive Members using the Costco Citi credit card—offering cashback on purchases up to $1,250—to effectively convert their cash into gold, garnering a financial benefit of 1% to 2% on the total purchase price.
This trend suggests that purchasing gold at Costco may be a savvy move, especially as you may want to consider additional supplies for your newfound wealth. Investing in tools like shovels could be prudent for those contemplating where to securely store their assets.
Source
www.entrepreneur.com