Gold Fever Hits Costco: Why Investors Are Flocking to the Precious Metal
In a surprising turn of events, Costco’s gold bullion has become a hot commodity, with sales reaching a staggering $200 million per month. But what’s behind this sudden surge in demand? According to economist Judy Shelton, it’s all about trust.
A Yearning for Real Money
Shelton believes that the popularity of gold is a reflection of consumers’ desire for a reliable store of value. “Gold is kind of a surrogate for the real economy,” she explains. “It represents commodities, but also that traditional role of money you can trust.” With inflation spiking and the US dollar losing purchasing power, it’s no wonder investors are turning to gold as a safe-haven asset.
The Rise of Precious Metals
Gold prices have soared 31.72% year to date, with silver and platinum following close behind. UBS chief investment officer Solita Marcelli sees further upside potential, citing the possibility of interest rate cuts and worsening geopolitical tensions. “Despite the rally, we think gold’s hedging properties remain attractive,” she writes.
Why Gold is a Meaningful Unit of Account
Shelton points out that gold has universal value and is highly recognized across borders. “It’s a meaningful unit of account,” she says. “It works across borders, and it has a long history of being a reliable store of value.” In an uncertain economic environment, these qualities make gold an attractive option for investors.
Investing in Gold: Options and Strategies
For those looking to get in on the gold rush, there are several options available. Investors can consider physical gold, structured strategies, ETFs, or gold miner equities. Marcelli also suggests actively managed strategies that seek to deliver alpha over comparable passive indices.
A Safe-Haven Asset in Uncertain Times
As the global economy continues to navigate choppy waters, gold is emerging as a safe-haven asset. With its long history of reliability and universal value, it’s no wonder investors are flocking to the precious metal. Whether you’re a seasoned investor or just starting out, gold is definitely worth considering.
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