Warehouse stores in Canada aren’t just selling large quantities of toilet paper these days — gold bars and coins and other precious metals are moving out of the realm of banking and jewellers and into their aisles.
Costco didn’t respond to requests for comment from CBC News, but officials had previously told investors their gold bars would sell out within hours of being listed online.
Cultural and financial value
Richmond Hill, Ont., resident Erfan Hashempour has invested in gold and silver over the past few years by purchasing coins, because they are easier to handle and to acquire through the Royal Canadian Mint. He was surprised to see gold bars and gold coins available at his local Costco warehouse.
“Anything else, yeah, you’d expect to see it in Costco, but not really gold,” he said.
Erfan Hashempour says he invests in gold for both cultural and financial reasons. (Craig Chivers/CBC)
For investors like Hashempour, gold is both a cultural and a financial investment.
“Originally, I’m from Iran. And in our culture, gold has always had significance,” explained Hashempour.
He’s been investing in specific precious metals to diversify his financial and investment portfolio. It’s also a way to address concerns that currencies and other stock-type investments might be less stable in the long term.
“I’ve always gotten this advice from my parents and from family members, to invest in precious metals such as gold and silver because it’s not something that depreciates [like] Iranian money over the past 40 years,” he said.
A ‘hedge’ against instability
That’s a common motivation for those investing in gold, according to precious metals dealer Jonathan Rose — they are nervous about how traditional currencies or stocks are performing, and gold has a proven track record as a stable investment.
“People who are looking for a hedge look at precious metals,” said Rose, who is with Genesis Gold Group in Beverly Hills, Calif.
Why Costco is now selling gold
Gold has long been seen as a stable investment, and at a time of global uncertainty, it’s becoming so popular that big box stores such as Costco have jumped on the bandwagon.
He adds that other factors, such as the volatility of newer cryptocurrencies and the fluctuating value of the U.S. dollar, drive people to what he calls “tangible” wealth — physical assets such as gold or silver.
“Any time there’s geopolitical, international instability, people are looking for a safe haven or a flight to safety and security,” he told CBC News.
To be quite honest, [gold investors] believe that the world’s probably going to go to hell in a handbasket.– David Wagner, Aptus Capital Advisors
However, portfolio manager David Wagner says gold does not always hedge against financial phenomena such as inflation, and that gold investors are sometimes acting out of fear.
“They’re trying to own gold if they believe that there’s going to be some type of debasement of the U.S. currency,” said Wagner, who is with Aptus Capital Advisors in Cincinnati, Ohio.
“To be quite honest, they believe that the world’s probably going to go to hell in a handbasket.”
Gold literally feels trustworthy to some
Wagner’s perspective is that many gold investors put more trust in an investment they can see, feel and hold in their hands. But he also says this may give them a flawed sense of security for the same reason: physical investments can be lost or stolen.
“[If] someone comes to your house and tries to rob you, you can tell them, ‘I’m safe, I own gold,'” he told CBC News.
“What are they going to probably do? They’re probably going to rob you and take your gold.”
That sort of concern doesn’t do much to move gold investors like Hashempour.
“I feel like gold is a safe bet for investment … whereas with stocks, things could go sideways for companies that you buy stocks from,” he pointed out.
But he said he does hold many typical stock and currency investments, and isn’t keeping all of his eggs — golden or not — in one basket.
TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.
The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.
The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.
The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.
Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.
Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.
This report by The Canadian Press was first published Nov. 6, 2024.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
