Costco says gold buyers are helping drive up its online sales
The retailer's e-commerce sales jumped 20.7%, "led by gold and silver bullions, gift cards and appliances," continuing a run of strong demand for its precious metal products.
Costco made only a single, terse mention of precious metals in its latest earnings call, but it reinforced that analysts were on to something when they flagged strong demand for the retailer's gold bars and silver coins this spring.
"Total e-commerce sales growth in the quarter was led by gold and silver bullions, gift cards and appliances," Costco Chief Financial Officer Gary Millerchip told investors Thursday, after the company reported a 20.7% jump in online sales for the third quarter. He didn't offer further details, and Costco didn’t respond to a request for comment Friday.
Wells Fargo researchers estimated in early April that the members-only retailer may have been pulling in $100 million to $200 million in monthly revenue from the products after rolling them out late last summer. By December, Costco said it was already selling over $100 million in gold bars within the space of a quarter, and sometimes running out in just hours.
Even those levels would be a drop in the bucket for a company that saw net sales top $57 billion in the third quarter. And analysts say margins on the gold and silver offerings are likely slim.
Still, the gold rush is the latest sign that some consumers remain hot on a perceived safe investment amid widespread uncertainty in an otherwise robust economy.
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