Gold bars are worth $1 million, but Costco gold bars are cheaper

Gold prices have risen about 20 percent since the start of the year, outperforming tech stocks and attracting a wide range of buyers, including central banks and Costco customers who hope the metal will help hedge against inflation.

The metal’s rapid growth means a standard-sized gold bar, which is typically around 400 troy ounces, now costs more than $1 million, Markets Insider reported earlier this week.

The gold bars sold at Costco, however, are much smaller than the standard size, typically ranging in size from 20 to 500 grams. A whore ounce of gold is roughly equal to about 31 grams.

Costco gold bars are smaller, yes, but they’re also more affordable for buyers looking to spend less than $10,000 on the metal instead of $1 million.

Costco brings in up to $200 million a month selling its gold bars and silver coins, Business Insider previously reported, and each new batch of the metal typically sells out within “a few hours.”

The markup on Costco’s metal sales is low, but the high-value items significantly boost the retailer’s online sales.

It is, however, difficult to collect. Buyers quickly learn that buying gold is much easier than reselling it, given the difficulty of trading the commodity.

Even amid the record performance, gold prices are expected to continue rising, especially ahead of a Federal Reserve interest rate cut likely next month.

Falling interest rates typically cause a surge in gold investment because of its tangible, time-tested value, BI previously reported.

Despite the skyrocketing price of gold, a Bank of America investment strategist told Markets Insider that investors should continue to buy gold.