A new kind of gold rush is sweeping through Shanghai, as a high-tech machine offers a quick, transparent way for residents to turn jewellery into cash.
The machine, dubbed the 'gold recycling ATM,' has attracted crowds eager to capitalise on surging gold prices. With queues stretching metres long and transactions completed in under half an hour, it's clear that this innovation is reshaping old methods of selling gold.
The Machine and How It Work
Launched recently at Shanghai's Global Harbour shopping mall, the machine is operated by Shenzhen's Kinghood Group. It sits inside the company's Smart Gold Store concept, combining technology and convenience. Customers bring in gold items of over 3 grams, making sure that they have a minimum purity of 50%. The process begins with the user placing their jewellery or gold pieces into the machine's tray.
Once deposited, the system measures the weight, then assesses the purity through a high-temperature melting process exceeding 1,000°C. The gold is then checked again to confirm its quality. The entire procedure, from weighing to payment, takes approximately 20 to 30 minutes, with live updates displayed on a screen. The machine deducts a service fee of around £1.85 (about $2.50) per gram before transferring the cash directly into the user's bank account.
Why Are People Flocking to It?
The appeal is straightforward – a fast, reliable way to liquidate inherited or unused jewellery. On 16 April 2024, when the machine was first introduced, gold prices were at record levels. Internationally, gold was trading above $3,400 per ounce (roughly £2,600) and domestic prices in China had soared past 1,000 yuan ($137 or £109) per gram. This made it an ideal moment for many to cash in, especially older residents with jewellery passed down through generations.
Social media quickly picked up on the trend. Posts showed long queues, with people bringing in everything from necklaces to rings, eager to see how much their items were worth. Many users expressed enthusiasm about the machine's transparency and speed, comparing it favourably to traditional jewellery shops. The real-time appraisal, clear pricing, and instant bank transfer make it an attractive option for those seeking quick cash.
Impact on Traditional Gold Buying and Selling
The rise of these ATMs has caused ripples in established gold businesses. Small-scale traders and 'gold scalpers' report fewer customers, stating the machine's efficiency as a key factor. A sales representative from China Gold, a major retailer, explained their prices are slightly higher than the ATM's, but noted that visits have slowed. 'Our store's buyback price is higher,' they said. 'But the convenience of the machine is hard to ignore.'
Xie Chengcheng, operations manager for Kinghood's Shanghai branch, confirmed plans to install over 100 machines across the city and beyond. The company's aim is to expand their reach into major centres like Beijing, Guangzhou, and Hong Kong, disrupting traditional jewellery trades. Already, machines are in use across 40 Chinese cities, often located in banks, supermarkets, and busy retail districts.
The Broader Picture: Rising Gold Prices and Public Interest
The timing couldn't be more perfect. As gold prices climb globally, the desire to realise gains from inherited jewellery or investments increases. Many note that the value of gold held by the public has risen sharply, prompting more to seek cash in return. Yet, experts advise caution.
Xu Weixin, a member of the Shanghai Gold Association, warned, 'While the prices are attractive now, people should consider holding onto their gold if they believe prices will go higher.' He pointed out that central banks and investors are still buying substantial amounts of gold, which could push prices further upward.
A New Era for Gold Transactions
This new approach marks a shift from traditional methods. Instead of relying on jewellery shops or private buyers alone, people now have a quick, standardised option that emphasises transparency. The convenience and speed have already drawn a large following, especially among older women who form the majority of users.
As the machines become more widespread, it's likely that the landscape of gold trading in China—and possibly everywhere else—will change significantly. Whether this leads to a loss for small traders or simply provides a new, more efficient alternative remains to be seen.
What's the verdict?
In a country where gold has long been a store of value and a symbol of prosperity, this new machine offers a practical twist. It turns precious metal into cash swiftly, with minimal fuss, at a time when many see the yellow metal as a safe haven. For now, pensioners and families alike are lining up, eager to turn their gold into ready money—proof that sometimes, the simplest solutions make the biggest impact.
