Mon, Sep 26, 2011 - Page 11 News List

China launches its first gold vending machine: report

INFLATION HEDGE:The machine is expected to be popular among Chinese consumers trying to guard against price increases, with gold demand up 27%

AFP, BEIJING

China, already the world’s -second-largest bullion consumer, has installed the country’s first gold vending machine in a busy shopping district in Beijing, state media said yesterday.

Shoppers on the popular Wangfujing Street can insert cash or use a bank card to withdraw gold bars or coins of various weights based on market prices, the People’s Daily said on its Web site.

Each withdrawal is capped at 2.5kg, or 1 million yuan (US$156,500), worth of gold, the report said.

Gold vending machines already exist in Britain, the US, the Middle East and Europe.

The machine was launched on Saturday by the Beijing Agricultural Commercial Bank and a gold trading company, the report said.

They plan to install an unspecified number of machines in secure locations, such as gold shops and upmarket private clubs.

Gold is often used as a hedge against inflation and the machines could prove popular among Chinese consumers looking for a convenient way to safeguard their cash amid rising prices.

Chinese consumer demand for gold soared 27 percent year-on-year to 579.5 tonnes last year, according to the World Gold Council.

India, the world’s top consumer, saw a 66 percent increase to 963.1 tonnes.

Despite the precious metal’s status as a safe-haven investment, gold prices slumped to below US$1,700 an ounce on Friday, as fears of a new worldwide recession amid a worsening eurozone debt crisis saw investors seek refuge in the US dollar.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top