A Costco gold bar bought in 2024 now holds a value of $870 more than it did a year ago.

In the world of finance, gold has been making headlines as its price continues to climb. This week, gold reached a new record high of $3,593.20 per ounce, surpassing the previous record set just a day earlier.

Back in April 2023, JPMorgan predicted that gold prices would rise above $4,000 per ounce by the second quarter of next year. This prediction seems to be gaining traction, as Goldman Sachs has also predicted gold prices could increase above $4,000 per ounce by mid-2026. Goldman Sachs considers gold to be its highest-conviction long recommendation.

The rise in gold prices is not just a Wall Street phenomenon. It is being felt far beyond the financial district, but the details of these effects were not provided in this article. In an environment of slow hiring and inflation above the Federal Reserve's 2% target, investors are seeking low-risk investments such as gold.

One company that has capitalised on this trend is Costco. The retail giant began selling gold bars in 2023 when gold was at an average closing price of $1,943. Costco sells up to $200 million worth of gold bars per month, making it a significant player in the gold market.

One Costco shopper who held onto their gold bar purchase in 2024 found their investment rewarding. The same bar, which cost $2,679 in September 2024, is now worth $3,549 in October 2021, a gain of $870.

Costco's Platinum Bars were also discussed in an article, although no new facts about them were provided.

It's worth noting that gold has gained more value than alternative investments, like purchasing company shares on the stock market, this year. Gold prices have risen by more than 42% this year, greater than a 9% gain in the S&P 500, a 6% rise in the Dow Jones Industrial Average, and a 10% spike in the Nasdaq over the same time period.

The institution that mentioned gold as a long-term investment recommendation in April 2023 was Bank Austria's VermögensManagement 5Invest. As gold prices continue to rise, it remains to be seen whether these predictions will hold true.

Rising gold prices are a sign of elevated economic uncertainty. As the world navigates through challenging times, gold seems to be a safe haven for many investors. Whether you're a Costco shopper or a seasoned investor, the rise in gold prices offers an interesting opportunity to consider.