This One Costco Item Is Reportedly Generating Up to $200 Million a Month for the Retailer Gold bars are flying off the shelves.

Discount membership club Costco is known for cultivating a cult-like following over certain products and for its prices on bulk items.

But there's one unexpected product that's generating a jaw-dropping amount of revenue (read: hundreds of millions) for the retailer — gold bars.

Wells Fargo analysts estimate that Costco could now be generating between $100 and $200 million a month after debuting one-ounce, 24-karat gold bars last October.

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This is a massive jump considering the gold bars reportedly brought in $100 million in the entire fiscal first quarter of 2024 that ended in November of 2023.

The prices of the bars vary based on market value.

^{via Costco}

"Our work suggests there has been significant interest given [Costco's] aggressive pricing and high level of customer trust," Wells Fargo equity analyst Edward Kelly reportedly said in a note to clients.

Costco limits purchases to five bars per person while also offering 2% cash back to executive members of the discount club and another 2% if members use a Citigroup credit card.

Gold prices have been surging since March, hitting record highs with the price of spot gold reaching $2,364 an ounce on Tuesday.

The gold bars are also popular with a younger audience, which has been reflected on social media. There are a slew of viral posts dedicated to finding and purchasing the gold bars, which sell out during nearly every restock.

"Priced below spot!?!?!? And you could get 4% back on top of that? Seems too good to be true," one Reddit user wrote about the deal.

"I hope Costco can keep this up a few more years," another said. "We need a few players like Costco to change the premium culture."

Others compared the deal to Costco's famed $1.50 hot dog and soda — it might not make much of a profit for the retailer, but it certainly gets people talking and in the door.

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"Pricing at that level and shipping costs suggests it's a very low-profit business at best," Wells Fargo suggested in its note.

Costco was up nearly 46% year-over-year as of Wednesday morning.