The US Will Have Its First Gold ATM This Year
The German company wants to install facilities to take advantage of the high demand for the precious metal. In 2010, Gold to Go will deliver 35 ATMs, following that next year the number of such ATMs to reach several hundred. Yesterday, the gold price reached a new high of $ 1,313 an ounce.
A German company that installs and manages ATMs for gold has announced that it will introduce this service in the United States by the end of the year, the company trying to take advantage of strong demand for gold due to the difficult economic context, informs CNBC.
The first ATM was installed in Abu Dhabi in May
Thomas Geissler, the creator of the brand Gold to Go and CEO of Ex Oriente Lux, told Reuters that his company intends to install several hundred of these units in 2011.
Gold to Go installed the first ATM for gold in Abu Dhabi, at the Emirates Palace hotel in May this year. Currently, there are devices like this in luxury hotels in Abu Dhabi, in Bergamo, in Madrid and, of course, in several cities in Germany.
“This year we will deliver around 35 ATMs, the number next year will be much greater,” said Geissler.
The ATM updates the gold price every 10 minutes
The ATM, which updates the gold price every 10 minutes depending on the evolution on financial markets, receives cash or credit cards and issues small gold bars, which may weigh 1 gram, 5 grams, 10 grams or an ounce. The company’s expansion plans in the United States this year aim, firstly, Florida, and then Las Vegas, according to Geissler.
“Consumers of gold in India and China must wait until next year,” he said, adding that his company has a high interest for these countries. “These countries are included in the plans for 2011,” continued the creator of the brand Gold To Go.
Gold to Go, which gets its gold from producers in Germany and Switzerland, tested its first ATM in 2009.
A new historic high
Also, the gold price reached a new high of $ 1,313 an ounce, on fears that the Central Bank of the United States will take measures to support the economy which will lead to dollar depreciation, which prompted investors to turn to gold.
“The gold price increased so much because of worries on a further depreciation of the dollar,” said David Wilson, an analyst at Societe Generale.
The dollar fell this week by 0.3 percentage points compared to the top of the six major currencies of the month. Compared with the euro, the dollar reached a last five months’ minimum, and against the Australian dollar it reached the last two years minimum.11