German firm plans gold-dispensing ATMs

German firm plans gold-dispensing ATMs

An online precious metals trading company is planning to install 500 gold-dispensing ATMs in Germany, Switzerland and Austria.

TG-Gold-Super-Mark.de plans to roll out the machines at airports, railway stations and shopping malls in a bid to encourage ordinary people to invest in physical assets.

The ATMs will dispense tin boxes containing one gram, five gram and 10 gram pieces of gold, made by Belgian precious metal recycling company Umicore, along with a certificate of authenticity.

Each machine will cost the company around EUR20,000 and can hold up to 1500 pieces of gold.

The firm recently showcased a machine at Frankfurt railway station, where a one gram piece costs EUR31 - a 30% premium to the spot market price.

However, in future the ATMs will be equipped with technology to make sure prices are aligned with those on its Web site.

The firm's chief executive, Thomas Geissler, told Reuters the ATMs were more than a gimmick and that everyone should have up to 15% of their liquid assets in gold.

He says that although demand for gold in Germany is still "tiny", his company has seen a dramatic rise in inquires in recent weeks.

Geissler also claims the machines have the potential to help relationships, telling Reuters: "I have yet to meet a woman who does not like a gift of gold. It's better than flowers. Flowers are more expensive. They wilt and you (as a man) don't get as many points at home as if you bring gold."

German firm plans gold ATMS to meet growing demand - Reuters

Comments: (1)

A Finextra member
A Finextra member 01 June, 2009, 14:29Be the first to give this comment the thumbs up 0 likes

I can purchase an "asset" for 30% of the prevailing market price.  There is something that I must be missing since beyond the novelity factor, what is the market and who are the target consumers?

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