Chinese 'Gold ATMs' shine at expo
Gold ATMs, anyone?
Chinese jewelry company Kinghood Group has rolled out automated gold exchange machines in Shenzhen, Guangdong province, which recently went online in the coastal city in South China.
These machines collect a variety of items made of the precious metal, weighing anywhere between 3 grams and 1 kilogram, including gold bars, jewelry and K-gold, irrespective of brand or make.
"The system evaluates the gold purity, weight and price within three minutes, and completes the melting inspection and fund transfer process in just 30 minutes, thereby creating an efficient and closed-loop gold trading process," said Xiao Yingjie, brand general manager of Kinghood in Shenzhen.
Following the machine's national launch in June, Kinghood debuted its global version at the 2024 China Gold Congress and Expo in Shanghai, a top event for the sector, over the weekend.
The machine has special functionalities that allow it to cater to global norms and payment systems.
"It will integrate with local physical gold trading markets, gold prices and third-party payment platforms to facilitate settlements in all major global currencies. Additionally, tailored development tools will be provided to customers based on different country-specific languages, common measurement units and legal regulations," Xiao said.
At its debut during the expo, Neil Harby, chief technical officer of the London Bullion Market Association, commended the machine for its swift processing time.
Exhibitors from Russia and Singapore have also expressed their interest in the machine.
So far, these "gold ATMs" have been launched in several Chinese cities, including Shenzhen, Hangzhou, in Zhejiang province, and the Hong Kong and Macao special administrative regions.
As of Friday, world gold prices stood at $2,459.32 per ounce, up from about $2,009.6 a year ago, according to the World Gold Council. Against the backdrop of higher gold prices, global consumption of gold jewelry has remained stable at 2,093 metric tons in 2023.
According to data released at the expo, China's gold production rose 0.58 percent year-on-year to some 180 tons in the first half of this year. However, gold consumption across the nation dropped by 5.61 percent year-on-year to some 523.8 tons, with gold jewelry consumption down 26.7 percent, even as sales of gold bars and coins surged 46 percent.
Acknowledging the structural changes and adjustments in the gold jewelry consumption market, Huang Shikun, chairman of Kinghood, said companies in the sector will face significant transformation challenges. He added that its new machine will offer significant opportunities for growth.
Chinese netizens have, meanwhile, praised the "gold ATMs", with some even seeking out their specific locations.
"It makes gold transactions more transparent and assured," said Liu, a buyer from Shenzhen.
However, they have also expressed displeasure at the service fee — 18 yuan per gram — saying it is higher than those charged at some regular gold outlets.
Zhang Junhao in Guangzhou contributed to this story.
