China taps Into gold transaction boom with fast, paperless ATM solution

Onome Amuge

As gold prices continue to rise to unprecedented levels globally, a novel technology is capturing public attention in China, the world’s second largest economy, offering a swift and paperless route for individuals to monetise their holdings.

According to reports, a shopping mall in Shanghai has become a focal point for this trend, housing an automated teller machine (ATM) that allows users to trade in their gold jewellery and receive payment within 30 minutes.

Developed by China’s Kinghood Group, the smart gold ATM marks a departure from traditional methods of selling gold, which often involve patronising pawn shops or jewellery stores. The machine accepts gold items weighing over three grammes with a minimum purity level of 50 per cent. Its sophisticated system analyses, melts, and precisely weighs the gold, accurately determines its purity, and then directly transfers the equivalent cash value to the seller’s bank account.

Reports indicate that the ATM has become a popular destination for Shanghai residents eager to capitalise on the soaring value of gold.

According to Chinatimes.com, the demand to use the machine is so high that all appointment slots are fully booked until May, with long queues forming as individuals seek to sell heirloom and generational gold.

Experts suggest that this enthusiasm for instant gold trade-in reflects a broader economic reality: the increasing value of public gold holdings is prompting more individuals to consider converting these assets into cash.

Xu Weixin, a member of the Shanghai Gold Association, told local media, “The introduction of smart gold ATMs primarily serves a recycling function from a business perspective. 1 With rising gold prices, there’s a stronger desire to cash out. The upward momentum is largely driven by central banks and institutional investors increasing their gold reserves.”