Costco, America’s favorite wholesale megastore—famous for offering everything from toilet paper to swimming pools—is making waves in an entirely different market: gold.
Since quietly entering the precious metals space last year, demand for their 1 oz 24k gold bars has surged dramatically.
In May, Costco tightened purchase restrictions, limiting members to one transaction capped at a maximum of two bars per day. In its 2025 first-quarter report, the retailer listed gold among its top sales categories.
And now, Walmart—the world’s largest retailer—has joined the gold rush and has begun offering 1 oz gold bars alongside groceries, electronics, and gardening tools.
The question is:
Why have so many Americans rushed in to buy gold bars?
As The Wall Street Journal recently reported, “When Markets Get Scary, Mom and Pop Buy Gold.”
David Wagner III, head of markets and equities at Aptus Capital Advisors, agrees and says, “If someone’s going out to buy gold, that means they think that there’s some type of instability at the structural level of the market and/or the government itself.”
In other words, the two retail giants’ decision to offer gold isn’t just a novel business strategy…
…it’s a calculated move driven by the collective foresight of a country bracing for further economic tumult because…
The nation’s fiscal troubles have become impossible to ignore.
We see the national debt soaring…
We see the purchasing power of the US dollar falling fast…
We see inflation reflected in the prices of essential goods and services…
And now, a growing number of Americans are looking for a stable store of value to help protect their wealth.
Because the truth is…
Many Americans are struggling financially.
According to the Administrative Office of the U.S. Courts, one of the nation’s leading bankruptcy experts, personal bankruptcies rose 13% in the Q1 2025.
The Federal Reserve of New York’s “Quarterly Report on Household Debt and Credit” shows household debt has soared to an eye-watering $18 trillion.
Additionally, Mark Zandi, chief economist at Moody’s Analytics, says loan delinquency rates are surging to the “highest it has been since coming out of the financial crisis.”
He adds:
“A high and rising number of American households are under mounting financial stress. Households are having serious trouble paying off their credit cards, auto loans, and even mortgages.”
Yet despite the mounting debt, defaults, delinquencies and tough financial decisions…
Folks are using their credit cards to buy gold bars from the retail giants in droves.
It’s truly a sign of the economic times.
But astute investors who’ve been watching the drama unfold know this rush to gold isn’t limited to Americans who are suddenly reading the economic writing on the wall…
It’s but one more instance of increased gold buying worldwide.
As we recently reported, central bank gold stockpiles are now at levels last seen in the 1960s, making gold the second-largest global reserve asset behind the US dollar.
CNBC reports that China alone has been buying gold for 7 straight months.
Russia is buying. So are Poland, India, Turkey, Qatar, Egypt, the Czech Republic, and many more.
Unfortunately, Costco members are limited to buying two bars, and Walmart recently placed a one-bar limit on purchases.
Fortunately, Colonial Metals Group clients have access to the highest-quality gold, and you can acquire as much as you choose. And, at this point, we still have ample supply to meet the increased demand we’re also seeing.
But remember, it takes considerable time and effort for gold providers to find, extract, mine, assay, and deliver the precious metal.
And if demand continues to grow, it may put upward pressure on gold’s price.
Already, gold prices have risen over 62% since last year and more than 93% over the last five years.
Yet recently, you may have noticed a temporary downtick in the price of gold.
This, for folks who want to protect their wealth, is a good thing.
American gold buyer Scott Woodridge understands this dynamic and told The Wall Street Journal, “A downtick in the price of a precious metals means you have the opportunity to buy more, and an uptick means your net worth goes up, so it’s a win-win.”
However, this slight discount isn’t likely to last long. Because gold’s price has historically always trended up long term.
And if Costco and Walmart’s empty gold shelves are any indication, that’s a welcomed trend we expect to continue for many years to come.
Please don’t hesitate to reach out to us with any questions you may have.
May you be safe and well during these uncertain times.
Todd Sawyer, Director of Client Education
Colonial Metals Group