Yes, it’s true — you can now purchase 1 oz PAMP Suisse gold bars (999.9 fine) at select Costco stores.

The price of gold is currently $2,372 per ounce — up nearly 20% in the last year. Investors favor gold during times of economic and geopolitical uncertainty because it is considered a safe-haven asset.

With the price of gold at all-time highs, it is tempting to jump on the opportunity to hold physical gold in your hand. Gold’s unique physical characteristics and natural beauty explain why civilizations spanning the past 5,000 years have universally regarded gold as real money.

But should you buy Costco gold bars?

Pros of Buying Costco Gold

Besides being able to pick up your bullion along with your Kirkland favorites, there are a couple of advantages to buying Costco gold.

Legitimate Bars

Costco is offering a legitimate gold product. The bars are Swiss-made by a LBMA Good Delivery Refiner. They meet strict requirements for fine ounce weight, purity, and physical appearance. You can be sure that you’re getting the real thing.

Low Fees

Costco sells their gold bars for 2% – 3% over the spot price. These premiums are lower than you will find at many traditional gold brokerage firms.

Certain platforms that offer physical gold investments may offer better pricing. Vaulted, for example, charges 1.8% over the spot price of gold.

Privacy

When you pick up your Costco gold from the store, you need to fill out a merchandising slip and have an employee deliver it to you. The nondescript packaging ensures that no one knows what you have just purchased.

Cons of Buying Costco Gold

Beyond these benefits, there are several drawbacks to purchasing Costco gold.

Not Easy to Sell

It’s easy to purchase gold through Costco’s website or in certain stores. But what do you do when you want to sell it?

Like this Wall Street Journal story reported, it’s not easy to sell your Costco gold. You could try to sell your 1oz bars to local gold dealers or pawn shops, but they will pay you a price significantly lower than the current spot price. Dealers want to ensure they’re getting their cut — which can be anywhere from 20% to 30% of the price.

To guarantee the best price when you sell, you need to be connected to a liquid market with many buyers.

For example, Vaulted allows you to sell your gold holdings into the professional market instantly, always guaranteeing the best price. The Vaulted app displays live buy and sell prices every time you make a transaction.

Security & Storage Concerns

Do you have a plan for storing your gold bars after you buy them from Costco? Will they be safe under your mattress or in the freezer?

Precious metals are ripe for theft, which is why Vaulted secures your gold in one of the safest vaults on the planet — the Royal Canadian Mint in Ottawa, Canada. We chose the RCM as our storage counterparty because of its excellent reputation and stringent security protocols.

And if you prefer holding it yourself, you can take delivery of your metals at any time.

Susceptible to Scams

Costco gold bars are selling out quickly every time they are in stock. You might be tempted to buy one through a reseller.

Retail investors need to be careful when buying gold in the open market. Many investors have been scammed with counterfeit gold bars that are difficult to verify without professional equipment.

Concerns regarding chain of custody also arise. If the source of your gold is unknown, there is a risk of inadvertently supporting human rights abuses, especially if the gold originates from areas lacking adequate protections for precious metals miners. Unfortunately, such issues are widespread in the gold mining industry.

With Vaulted, you can be assured that the gold you purchase is verified and conflict-free. Vaulted avoids all sources of gold that finance and contribute to abuses of human rights.

No Fractional Ownership

With Costco gold, you are locked into purchasing 1oz bars, which means your minimum investment is over $2,300.

But what if you don’t have $2,300 to invest?

With Vaulted, you can purchase any amount of gold that you want. If you only have $10, $50, or $100, you can purchase that exact amount in real, physical gold. And you can easily invest on a schedule.

Vaulted: Buy Physical Gold With the Tap of a Finger

Investors start buying gold when they wake up to the unsustainability of our debt-based fiat system, which requires the government to perpetually steal value from future generations. We cannot stop politicians from borrowing and printing, but we can own a better form of money.

We created Vaulted to make physical gold available to all investors.

Vaulted allows you to buy serial-numbered gold bars with the tap of a finger, at the best cost structure in the industry. We store your metals in world-class vaults, and allow you to take delivery of your bars at your convenience.

Vaulted is backed by over 50 years of precious metal investment experience. Working with Vaulted guarantees you’re working with the best in the industry.

Empower your wealth with gold today by signing up for a free Vaulted account.