Shanghai’s first gold ATM draws crowds as prices hit record highs

Shanghai’s new "gold recycling ATM" has attracted significant attention, particularly from elderly residents aiming 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 substantial queues over the past few weeks. Customers now have to reserve their spots several days ahead of time due to high demand.

The Smart Gold Store of the 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 monetary compensation.

For instance, a customer inserted a 40-gram gold necklace into the ATM and received a payment of CNY36,000 (US$4,988) within half an hour, as reported. China Times.

Managed by Shenzhen’s Kinghood Group, the ATM, part of the company’s Smart Gold Store concept, accepts gold items over 3 grams with at least 50% purity.

The recycling involves identity checks, melting at over 1,000°C, and a second purity assay. A CNY18 yuan (US$2.50) per gram service fee is applied.

Xie Chengcheng, who serves as the Shanghai operations manager at Kinghood, told 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 encompass 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 shaken up 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 an inability to match the ATM’s swiftness in transactions.

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 pricing exceeding RMB788 yuan ($108) per gram.

"From a business standpoint, the main role of introducing intelligent gold ATMs is to facilitate recycling," said Xu Weixin, who represents the Shanghai Gold Association, to local press outlets.

He noted that this indicates as gold prices have risen, the worth of gold owned by individuals has grown considerably, prompting a heightened urge to sell for profit.

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.