Thar’s gold in them thar grocery aisles..And Costco shoppers have the right sized shopping carts — and wallets — to get their fair share of the precious yellow alloy..That’s because Canada’s favourite dispensary of mega-sized ketchup and toothpaste has branched into bullion by selling one-ounce bars of pure Swiss gold..For the low price of $2,679.99, members can purchase their own 1 Troy ounce PAMP Suisse Lady Fortuna gold bar ‘new in assay’, which means its certifies its authenticity and purity. The company has set a limit of two bars per person per week..The offer is open in all provinces and territories with the exception of Manitoba (no explanation given). Customers in the Northwest Territories have to fork over additional UPS delivery fees. Costco is also selling them in Asia and the US..According to Costco chief financial officer Richard Galanti, they’re selling like proverbial hotcakes. “When we load them on the site, they’re typically gone within a few hours and we limit two per member,” he told an earnings conference call..For those in the know, PAMP — short for Produits Artistiques Métaux Précieux — is one of the world’s leading precious metals refining and fabricating company, located in Castel San Pietro, a 14th Century villa near the Italian border..The company’s signature Lady Fortuna design, depicting the Roman goddess of good fortune, was the first decorative design ever stamped onto a gold bar. It also makes proprietary medals under licence for brands such as Hello Kitty and the Peanuts. Its ingots and coins are offered almost exclusively by retailers such as Harrods in London..The assay is equally important because PAMP is one of only three ‘approved good delivery referees’ in the world — meaning they’re freely acceptable as tender at the Swiss National Bank, the London Bullion Market, the New York Mercantile Exchange, the Tokyo Commodity Exchange and the Shanghai Gold Exchange..The company is also an official distributor for government tender coins including the US Eagle, the Canadian Maple Leaf, the Chinese Panda and the Royal Mint Sovereign..Not only are they pretty to look at, but gold coins and bars are good investments and a natural hedge against inflation..Over the last five years, Canadian Gold prices have risen about 65% compared to about 20% for the broader Toronto Stock Exchange. Gold prices fluctuate based on global events and economic conditions are expected to double by 2030..According to Silver Gold Bull, gold buyers stock up on bullion in anticipation of major stock market crashes or geopolitical events such as wars..“Dollars simply do not store value through turbulent economic periods, they can actually become quite useless — the Germans used to burn them for warmth because it was more expensive to buy firewood with their currency.”.Although it’s not exactly a wholesale price at $2,679.99 — a $150 premium to the actual spot price as of Friday — the premium for these particular Fortuna bars is competitive with major Canadian banks. TD has a one-ounce bar listed at $2,653.74..According to Silver Gold Bull, retail price variations are only partly based on spot price considerations. Others include how the bars are manufactured, currency fluctuations and aesthetic considerations that make them more or less collectable..“The retail price of any gold bullion product is simply the gold spot price plus a small gold premium to cover dealer charges. The gold premium will vary depending on the dealer, but a reputable gold dealer will not charge a high premium for the sale of gold coins or gold bullion,” it says.
