Costco, the giant American wholesale corporation, reported record-breaking sales of gold bars in the first quarter of 2020. According to the company’s quarterly earnings report, Costco sold more than 100 million in gold bars in the first three months of this year alone.
This staggering number reflects the growing demand for gold as a safe-haven investment amid a troubled economic situation. As investors search for a reliable alternative to stocks and bonds, gold is becoming an increasingly desirable asset due to its low volatility and long-term investing benefits.
Costco’s sales of gold bars also suggests that many people are taking advantage of lower prices. Since mid-March, gold prices have fallen by more than 7% due to a global economic slowdown. This drop in gold prices makes it a very attractive option for investors who want to diversify their portfolio.
The results of Costco’s gold bar sales are an important indicator of the health of the gold market. Historically, when the gold price is low, demand for gold bars is high. This trend indicates that investors are taking advantage of low prices and are investing in gold bars to protect their wealth.
This uptick in gold bar sales at Costco provides further evidence that investors are looking to increase their portfolio diversification and are looking to gold as an option. In addition to the safety of gold, investors can also benefit from its ability to maintain its value over time. As the economy slowly recovers, gold bars provide investors with a reliable and sound long-term investment.