Could a savvy Costco shopper turn a profit by reselling a particular item? The answer, surprisingly, might be yes, with potential gains reaching upwards of $870. The key lies in gold, a commodity currently trading at near record highs, having surged over a thousand dollars in value compared to last year.
Imagine purchasing gold last year and holding onto it. If you decided to sell it now, you'd likely receive approximately 30% more than what you initially paid. This impressive increase highlights gold's robust performance in recent times, making it an intriguing prospect for both seasoned investors and those simply seeking to diversify their assets.
To put the price surge into perspective, gold is currently trading at roughly $3,549 per ounce. This represents a remarkable 32% increase compared to the price of around $2,679 per ounce during the same period last year. This significant jump has captured the attention of economists and investors alike.
So, what's driving this surge in gold's value? Experts attribute it to a confluence of factors, primarily economic uncertainty. In times of instability, investors often flock to gold as a safe haven asset. Furthermore, gold tends to perform well when interest rates decline, making it an attractive investment option in the current economic climate.
Heightened global tensions further fuel gold's allure. Ongoing conflicts and geopolitical uncertainties create an environment where investors seek stability. Concerns surrounding U.S. debt and anxieties about the Federal Reserve's independence also contribute to gold's appeal as a "fear hedge."
Given this backdrop, purchasing gold seems like a potentially lucrative investment. If a Costco shopper had purchased a gold bar in September 2024 and chose to sell it in September 2025, they could potentially realize a profit of approximately $870. This calculation is based on comparing the spot price of gold in September 2024 to its current price.
However, it's important to remember that the spot price serves as a benchmark for negotiation. The actual price you receive for a gold bar might be slightly lower, typically around 5% to 10% less than the spot price, according to industry experts. This difference accounts for the dealer's profit margin and other associated costs.
Furthermore, selling gold bars is subject to taxes. The IRS classifies gold bars as collectibles, and if you sell them within a year of purchase, any profit you make will be taxed at your normal income tax rate. For collectibles held longer than a year, the capital gains tax rate is capped at 28%. State income taxes can also vary, potentially impacting your overall profit.
Understanding where to sell your gold bars is crucial for maximizing profits. Selling online might result in lower offers compared to selling in person. Brick-and-mortar bullion shops may offer more favorable prices, typically around 1% to 5% below the spot price, according to sources like the Wall Street Journal. These stores also provide in-person evaluations and immediate payment, offering convenience and peace of mind.
Beyond the potential for profit, gold has attracted the attention of high-profile individuals. Millionaires, tech executives, and professional athletes are among those reportedly hoarding gold as a form of doomsday preparation. This trend is fueled by fears of dollar devaluation and economic downturns.
Concerns surrounding various factors, ranging from presidential elections to potential cyberattacks, contribute to the surge in gold purchases. Gold is viewed as a valuable asset for bartering in a doomsday scenario, where traditional currency might lose its value.
Buyers are increasingly seeking small-denomination gold and silver coins, as they are considered more tradable and easier to barter with. In a crisis, gold is perceived as a more reliable currency than paper money, capable of securing essential goods and services.
In times of crisis, gold holds significant value as a tangible asset, prompting individuals to stockpile it for potential future use. This "safe haven" appeal is a key driver of gold's enduring popularity.
Jonathan Rose, CEO of Genesis Gold Group, highlighted the reasons for gold hoarding, stating that the surge in gold purchases is fueled by fears of devaluation of the dollar and an overall economic downturn.
He also noted that the current surge in gold purchases is attributed to concerns ranging from the 2024 presidential election to recent AT&T power outages, which some fear were cyber attacks.
Rose explained that gold is seen as a valuable asset for bartering in a doomsday scenario, where traditional currency may lose its value. He also added that buyers are increasingly seeking small-denomination gold and silver coins, which are considered more tradable and easier to barter with.
In a doomsday situation, gold is perceived as a more reliable currency than paper money, capable of securing essential goods and services, according to Rose.
Rose emphasized that in times of crisis, gold holds significant value as a tangible asset, prompting individuals to stockpile it for potential future use.
When it comes to selling, remember that the IRS classifies gold bars as collectibles, and if you sell within a year of purchase any profit would be taxed as normal.
Collectibles are taxed at normal rates, and capped at 28%. State income taxes can also vary widely, so depending on where the shopper lives, they could be paying even more.
For example, some states don't distinguish between collectibles and other capital gains. It's also good to know where to sell the gold bars to maximize profits.
Selling at pawn shops will likely result in lower offers than if you went to an in-person buyer.
Selling at brick-and-mortar bullion shops might prove more fruitful, as stores would offer around 1% to 5% below the spot price. These stores also offer in-person evaluations and immediate payment, which could go a long way to putting the shopper at ease.