Gold is near an all-time high—here's how much a Costco bar bought a year ago is worth today

CNBC

3 hours ago

Costco's gold bars are worth a lot more than they were a year ago — and demand is soaring.
The bars have been a steady draw since Costco began selling them in 2023, and a sharp rise in spot gold prices seems to have boosted their appeal. In May, the retailer tightened purchase restrictions, limiting members to one transaction, capped at a maximum of two bars, per day.
As of Tuesday morning, gold traded around $3,390 per ounce — near a recent record high and roughly 45% higher than it was at this time last year.
Historically, investors tend to flock to gold during periods of geopolitical instability, inflation and concern over the strength of the U.S. dollar.
Here's how much more a 1-ounce gold bar purchased at Costco in June 2024 could be worth today, based on the listed purchase price and Tuesday's opening spot price.
If you bought gold from Costco a year ago, you may be considering selling at a profit. But offloading a gold bar isn't as simple as checking the spot price and pocketing the difference.
The spot price offers a benchmark for negotiating prices, but sellers typically receive about 5% to 10% less, depending on where and how they sell, says Jon Ulin, a certified financial planner based in Boca Raton, Florida.Brick-and-mortar bullion dealers typically offer in-person evaluations and immediate payment, and may pay 1% to 5% below the spot price for a standard 1-ounce gold bar — often more than pawn shops, The Wall Street Journal reported on April 19, 2024. Online buyers may advertise competitive rates, often with the added convenience of insured shipping.
In either case, vetting potential buyers on platforms like Yelp, Google or the Better Business Bureau can help you avoid lowball offers, hidden fees or scams.
"I would avoid private buyers or marketplaces like eBay or Facebook Marketplace," says Ulin. "You're dealing with a high-value item and there's a risk of encountering less-than-reputable individuals."
Any profits you make from selling gold can be taxed at a higher rate than other investments, such as stocks or bonds.
The IRS generally classifies physical gold — such as bars, coins or jewelry — as a collectible for tax purposes, Troy Lewis, a certified public accountant and professor of accounting and tax at Brigham Young University, told CNBC on April 30.
The "collectible" classification means that federal long-term capital gains on gold can be taxed at a rate of up to 28%, compared to a maximum of 20% for stocks or real estate. If the gold is sold within one year, any profit is taxed as ordinary income, which could mean an even higher rate, depending on the seller's tax bracket.
By selling gold, you might unexpectedly "be adding up the tax bill you pay to Uncle Sam," says Bill Shafransky, a New Canaan, Connecticut-based financial advisor.