Saturday

07-19-2025 Vol 2026

Increasing Demand for Costco Gold Bars Amid Soaring Prices

Costco’s gold bars are becoming increasingly valuable, and demand is surging.

Since its introduction in 2023, Costco’s gold bars have been a consistent favorite among buyers.

A recent surge in spot gold prices has further amplified their appeal.

In May, Costco introduced purchase restrictions, allowing members only one transaction a day, with a maximum of two bars per purchase.

As of this Tuesday morning, gold was trading around $3,390 per ounce, nearing a recent record high and marking a substantial increase of approximately 45% from the same period last year.

Investors often turn to gold during times of geopolitical instability, inflation, and doubts about the strength of the U.S. dollar.

For individuals who purchased a 1-ounce gold bar from Costco in June 2024, the potential gains are noteworthy.

With a purchase price of $2,399.99 and a spot price currently at $3,390, the unrealized gain stands at $990, representing a percentage increase of 41.3%.

As the value of gold continues to rise, those who bought at a lower price might be contemplating selling their bars for profit.

However, selling a gold bar is not a straightforward endeavor of merely looking at the spot price and taking the difference in profit.

The spot price serves as a benchmark for determining sale prices, yet sellers typically receive about 5% to 10% less, depending on the method of sale, as noted by Jon Ulin, a certified financial planner in Boca Raton, Florida.

For those selling to physical bullion dealers, evaluations are conducted in person, with immediate payment granted—but payments may fall between 1% to 5% below the spot price for most standard 1-ounce bars.

This is often a better option than dealing with pawn shops, according to a report from The Wall Street Journal dated April 19, 2024.

Conversely, online buyers present competitive rates, coupled with the bonus of insured shipping.

Regardless of the selling method, it is vital to thoroughly vet potential buyers using platforms like Yelp, Google, or the Better Business Bureau.

This helps ensure sellers are protected from lowball offers, hidden fees, or scams.

Jon Ulin advises against selling to private buyers or using marketplaces like eBay or Facebook Marketplace due to the inherent risks of dealing with high-value items.

In addition to understanding the selling process, prospective sellers must address the tax implications of their profits.

Profits from gold sales are taxed differently than profits from other investments like stocks or bonds.

The IRS classifies physical gold like bars, coins, or jewelry as collectibles for tax purposes, according to Troy Lewis, a CPA and accounting professor at Brigham Young University.

This classification means federal long-term capital gains on gold can be taxed at rates up to 28%, compared to a maximum of 20% for stocks or real estate.

Selling gold within a year incurs ordinary income tax, which may be higher based on the seller’s tax bracket.

Consequently, selling gold can unexpectedly inflate one’s tax bill.

As Bill Shafransky, a financial advisor in New Canaan, Connecticut, points out, individuals may find themselves with a hefty tax bill after selling their gold investments.

Overall, while Costco’s gold bars offer promising returns, potential sellers should remain informed and prepared for the financial implications involved in selling their gold.

image source from:https://www.nbcphiladelphia.com/news/business/money-report/gold-is-near-an-all-time-high-heres-how-much-a-costco-bar-bought-a-year-ago-is-worth-today/4211968/

Abigail Harper