The first “gold recycling ATM” in Shanghai has attracted significant attention, particularly from elderly residents who wish to sell their longstanding jewelry collections amid rising international gold prices.
Located within the Global Harbor shopping center in Shanghai, this facility has been attracting lengthy queues recently, necessitating reservations several days ahead of time for those wishing to utilize the service.
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The Smart Gold Store of Kinghood Group in Shanghai. Image courtesy of Shenzhen Kinghood Group. |
Customers must place their gold items into the machine; these pieces will then be weighed, melted, and inspected. In exchange, they will get money in return.
For instance, a customer inserted a 40-gram gold necklace into the ATM and got a payment of CNY36,000 (US$4,988) within half an hour, as reported.
China Times.
Operated by Shenzhen-based Kinghood Group, this ATM is an integral component of their innovative Smart Gold Store initiative. It processes gold articles weighing more than 3 grams and having a minimum purity level of 50%.
The process includes identity verification, heating above 1,000°C, and a secondary test for purity. There’s also an additional charge of CNY18 yuan (approximately US$2.50) per gram for this service.
Xie Chengcheng, who serves as the Shanghai operations manager at Kinghood, mentioned
China Times
The firm plans to set up more than 100 gold ATMs in Shanghai, as machines have already been installed in Beijing, Guangzhou, Shenzhen, and Hong Kong.
Last year, Kinghood extended its Smart Gold Store network to cover 40 Chinese cities, strategically positioning them within banks, supermarkets, and retail outlets to strengthen its presence in the retail sector.
The introduction of the ATM has significantly impacted conventional gold purchasing practices. Local “gold scalpers” along with smaller buyers have experienced financial setbacks because of the ATM’s efficiency and openness. Several individuals mentioned decreased liquidity and their struggle to match the ATM’s rapid processing times.
On April 16, when the Shanghai ATM was launched,
Gold prices reached all-time peaks.
,enabling long-term gold holders to sell at premium prices.
The Shanghai Gold Exchange announced real-time prices exceeding RMB788 yuan ($108) per gram.
“The primary role of introducing intelligent gold ATMs is mainly for recycling purposes from a business standpoint,” said Xu Weixin, who is affiliated with the Shanghai Gold Association, to local press outlets.
This indicates that as gold prices have risen, the worth of gold owned by individuals has grown considerably, prompting an enhanced urge to liquidate their holdings, he noted.
Xu warned against quick disposals and advised, “not to hastily sell their gold reserves,” suggesting they might want to hold onto them longer due to the possibility of additional gains.
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