Whenever there is a gold thread, there are likely to be claims that the premiums are too high on small purchases so that buying gold is a loser's game even if the price goes up.
However, if you are a Costco Executive member, you should be able to buy 1 to about 7 ounces of gold (depending on the specific offer) whenever they have an allotment to sell, at essentially no premium after rebates.
If you just look at the list price, it is usually about 4% over the spot price. But you get 2% back as an executive member and since I assume everyone here has a cash back credit card, you should get about 2% back from that card too (e.g., Fidelity's Elan card). Most gold dealers won't accept payment on a credit card without charging extra fees but Costco doesn't do that.
So after both of those rebates, you're buying for just about spot. Such a purchase can even be fairly lucrative if you have credit card spending amounts needed to get bonuses, as gold purchases add up quickly.
Now it is also true that they don't have gold all the time, but they seem to have been increasing the number of offerings recently.
In the last couple of weeks, they have had at least two such offerings although I haven't been checking every day.
The ones I've seen recently were:
1. 1 oz. Gold Maple Leafs, minimum 1, maximum 5.
2. 50 and 100 gram bars, minimum 1 of each, maximum 2 of each.
If you bought the maximum of both of those offerings, you would end up with about 15 oz. of gold essentially at spot.
Note that I'm not recommending buying gold, do your own due diligence, etc. But the claim that there's no way to buy small amounts without excessive premia is incorrect, at least for Costco Executive member.
Note: I just checked costco.com for "gold bar" and found that they are selling the Pamp Suisse 100g bar, maximum 2 per member, at $8,599.99, which at $2634.60/oz. calculates to a 1.5% premium. After receiving 4% back from the executive membership rebate and the Fidelity credit card, this means you are buying at about 2.5% under spot. And you can generally get at least 2% under spot from any reasonable dealer for a 100g bar in assay card, so you're not in the hole as soon as you buy.
However, if you are a Costco Executive member, you should be able to buy 1 to about 7 ounces of gold (depending on the specific offer) whenever they have an allotment to sell, at essentially no premium after rebates.
If you just look at the list price, it is usually about 4% over the spot price. But you get 2% back as an executive member and since I assume everyone here has a cash back credit card, you should get about 2% back from that card too (e.g., Fidelity's Elan card). Most gold dealers won't accept payment on a credit card without charging extra fees but Costco doesn't do that.
So after both of those rebates, you're buying for just about spot. Such a purchase can even be fairly lucrative if you have credit card spending amounts needed to get bonuses, as gold purchases add up quickly.
Now it is also true that they don't have gold all the time, but they seem to have been increasing the number of offerings recently.
In the last couple of weeks, they have had at least two such offerings although I haven't been checking every day.
The ones I've seen recently were:
1. 1 oz. Gold Maple Leafs, minimum 1, maximum 5.
2. 50 and 100 gram bars, minimum 1 of each, maximum 2 of each.
If you bought the maximum of both of those offerings, you would end up with about 15 oz. of gold essentially at spot.
Note that I'm not recommending buying gold, do your own due diligence, etc. But the claim that there's no way to buy small amounts without excessive premia is incorrect, at least for Costco Executive member.
Note: I just checked costco.com for "gold bar" and found that they are selling the Pamp Suisse 100g bar, maximum 2 per member, at $8,599.99, which at $2634.60/oz. calculates to a 1.5% premium. After receiving 4% back from the executive membership rebate and the Fidelity credit card, this means you are buying at about 2.5% under spot. And you can generally get at least 2% under spot from any reasonable dealer for a 100g bar in assay card, so you're not in the hole as soon as you buy.
Statistics: Posted by technovelist — Mon Sep 30, 2024 7:43 pm — Replies 12 — Views 491