MacroScope

Gold to go

May 20, 2009

Automatic teller machines (ATMs) — 500 of them — dispensing pieces of gold will be available around Germany, Switzerland and Austria by the end of this year.

That at least is the plan of German precious metals online trading company TG-Gold-Super-Markt.de. The ATMs, to be located at airports, railway stations and shopping malls, are intended to accustom ordinary people to the idea of investing in a physical asset such as gold, the thinking goes.
 
Thomas Geissler, the company’s chief executive, said the gold ATMs might even improve relations between the sexes.
 
“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,” he said.
 
A prototype ATM on display for a one-day marketing test at the main railway station in Frankfurt, Germany’s financial capital, did indeed reward your correspondent with a 1-gramme (0.0353 ounce) piece of gold.
 
It cost the equivalent of $42.25 — a 30 percent premium over the spot market price.

Comments
31 comments so far | RSS Comments RSS

Now that is an idea. Why can’t we do that here in the US. Oh wait, because the socialist in congress want to inflate the money supply till they destroy the dollar. Thats why.

Posted by Derek | Report as abusive
 

Thats what you call a good return on investment, selling the gold at a 30 percent premium, with little risk involved. Smart thinking, smart business idea!

 

People will be using the ATMs when the currency crisis hits. When paper money devalues by 50% to 75%, then paying the 30% markup for gold becomes a good deal. And you can pass on the markup during the resale to other consumers, though you’ll lose the markup and some more if you sell the gold back to a dealer.I love the idea of making gold more commonplace. We just have to exempt gold and any other potential medium of exchange from the VAT so people don’t pay a double-VAT when using gold for trading.Learn more about money by reading Murray Rothbard’s “What has government done to our money.”

 

good return on the investment for the atm owner. absolute moronic investment for the buyer. buy it for a 30% mark-up then go ahead and try to get fair value. you won’t get 20% of the market value at sale.

Posted by fred mertz | Report as abusive
 

Great idea. Can we get them in the USA real soon???

Posted by Ken | Report as abusive
 

ridiculous. Who wants 1 gram of gold? If newmont was selling ounces at a 5% discount, let’s talk about it. Premium for small pieces is stoopid.

Posted by Roberto Madrigal | Report as abusive
 

Granted it’s a neat business idea, but I fail to see how it’s going to entice people to invest in physical gold once the fad or newness wears off. So what good is the idea if no one buys anymore. I would do just as Mr. Starck did and buy 1 gram just to say I did. However, with a 30% premium I would be hard pressed to buy more.

Posted by rugrabbit | Report as abusive
 

what about platinum and palladium? stillwater?

Posted by philosopherkingtomas | Report as abusive
 

Great Idea. Cash for gold pays 17% of the spot gold price to people who turn in their old jewelery then mints 1 gram coins and sells them at 130% of the spot price. I think that is a 765% profit? Anyone wanna lend me a few million to get into this business? How about a machine that accepts jewelery AND dispenses coins?

Posted by Bob Roberts | Report as abusive
 

That’s a great ROI, especially in today’s market. But, if it takes off, I’m sure competition will drive markups down considerably.

Posted by iasok | Report as abusive
 

Great idea. Wean people off of the phony paper money.We need to bring back the $500. & $1,000. billWe need anonaminity from the FEDS & corporations.

 

This is the dumbest idea I’ve read about in many moons. Who is going to buy gold out of an ATM? Really, come on.

Posted by Dustin | Report as abusive
 

i just hope the Machines are well secured to the groundA very tempting target…we will see how many they will put up good luck

Posted by Helmut Beintner | Report as abusive
 

So you basically start out 30% in the hole when you buy gold out of this thing on top of whatever hit you take when you try to sell it later? And there’s no mention of the quality of the gold they’re dispensing in these things.The only way this makes sense as an investment is if you own one of those machines.

Posted by Brian | Report as abusive
 

Wow, 31 grams in a troy ounce, imagine a Krugerrand (smaller than a silver dollar) cut into 31 pieces, that’s not very much gold. Another way to look at it, a US nickel weighs about five grams. But I like the vending machine concept.

Posted by perlstar | Report as abusive
 

The US is a failed state. For those who select to maintain their wealth in fiat currency, your fate is hunger. Ubanga the socialist is a Manchurian candidate selected by the Bilderburgs. Good luck China trying to dump that garbage called US Treasuries on unsuspecting 3rd world countries in exchange for commodities

Posted by Argentum; | Report as abusive
 

Awesome! This is the wave of the future. This is how it all begins. We must begin, right now, building a new world in place of this outmoded fiat corporatocracy. Once anonymous digital bearer certificates pick up and become more trusted, i hope these ATMs start accepting them. Once that happens it’s over. The central banks of the world will be rendered powerless and the people’s of the Earth will become truly free. No govt on the planet can stop what is coming!

Posted by Jesus_Himself | Report as abusive
 

Remember, gold IS money. Gold is also anonymity. These ATMs will give people a vote of no confidence in the fiat system, and will allow many who would have otherwise not been aware of the concept to exchange their paper for something that will hold value. A very noble service this company is providing. Free market money forever!

Posted by Patrick in Colorado | Report as abusive
 

The fellow above, who is deriding the premium, and claiming that one can’t even get back 20% of the spot price is, of course wrong.Sure, a 30% premium is a lot, but look on ebay, or any PM dealer, what they are charging for fractional gole (less than 1 ounce).A 1/10 and 1/20 ounce coin usually costs about 50% above spot (Pandas, Philharmonics, Eagles, etc). Since the spread on ebay for buy/sell is only the ebay commission, that is not very much, <5%.So, the market proves you wrong. The dealers do usually only offer spot, true, but you would be silly selling to them, use ebay, etc.True also, paying the premiums for fractionals in general is not smart, but the market is doing so right now, so enough people outthere do it. Fractionals have one advantage: it is much more fungible if a crisis ever comes than even a 1/2 ounce, which would be too valuable for everyday item purchasing.Of course, the 1gr piece will have to be of a known brand/mint to gain wider acceptance, but that does not disprove the argument, it is only a limiting condition for the specific instance.

Posted by Chris | Report as abusive
 

Awesome!!!!!!!!!! 30% is quite a markup, but the way banks round the world continue to collude and inflate I think this is the start of something beautiful. Let us have REAL money.

Posted by Josh | Report as abusive
 

Is there anyway to guarantee that what I get was not a dental filling from some dead person? I’ll stick with Platinum, Catalytic converters aren’t nearly as icky.

Posted by Geo8rge | Report as abusive
 

Nobody “invests” in precious metals unless they invest in a mine, mint or a refinery like the spanking brand new one coming on stream in Bolivia, http://www.Royalsilver.com. You SAVE physical gold, silver, palladium etc. PM’s always hold their purchasing power and right now and for the future a 30% premium at current price is not bad considering you make it all back and more within a 12 month period. If you bought a few fractional Eagles etc. a year ago at 30% you are now ahead. Physical PM’s accessible to you in 5 minutes [this rules out all ETF's, bank safety deposit boxes etc.] are always the smart move. If you can’t touch it, you don’t own it.

 

Probably the most bullish peice of news for Gold — even more so than China building up reserves.If this catches on, it brings up the dangerous issue of ‘transactional’ value of gold — i.e. it could mean the end (or atleast the beginning of the end) for fiat money…

Posted by Ahmed | Report as abusive
 

Wow…I hadnt realized that gold dealers would be allowed to circumvent banking/financial laws by removing the euro from the market in exchange for gold with a +30% price.Or is the gold standard about to make a return?

Posted by Sean Robert Meaney | Report as abusive
 

Right on! What a magnificant idea! Precious metal “token” investments made as simple and convenient as a thirty second pause at your local ATM. Beautiful. Truly Brilliant!May honest money catch on like wild fire! … Setting a blaze the decietful betrail of unethical, immoral, debased, contracual fraud; commonly called “bank notes” or “tender”.PAPER IS PAPER; MONEY IS MONEY! Fraud is Fraud!!

Posted by Lady Bean | Report as abusive
 

Let me have 24k gold and not that 14k brass that is being sold around here and I may consider purchasing some to ease my mind.Is gold still cheaper in Dubai? Must check it out.

Posted by Dan | Report as abusive
 

30% markup? Just when you thought ATM fees couldn’t get any more obscene. Hope you were spending company money for the experiment.

Posted by Brian Foulkrod | Report as abusive
 

Chris,Very true, my 30% comment was not exactly spot on. ;) I think it will be awesome to have these vending machines around, especially during the runs on getting hands on the physical. I remember last year when all the coin dealers where cleaned out and bullion dealers online were posting banners that said three month wait for delivery. Wow. Some people were giving their left nut on ebay just to get some physical coin and bullion whatever it was, silver, gold, plat. No, dont get me wrong I hope there arises some competition in this area and different vendors take notice of how wonderful an opportunity and a service this is. And yes, true I did shoot my mouth off a little to quickly, smaller denominations do come with higher premiums. My bad. Just got a little excited was all. My humble apologies. Peace.

Posted by Josh | Report as abusive
 

Could it be that we’re finally going to start trading with real money?I have a feeling that this concept will take off like wildfire!We need honest money! This is one step closer!

Posted by Sam | Report as abusive
 

I’ll sell my home produced Honey products for Gold, any day of the week!

Posted by beesting | Report as abusive
 

The sad fact is that the dollar will implode if inflation is not halted. However, to stop inflation under the current system is practically impossible as the entire nature of the financial system (the fiat monetary system) is inflationary in nature. What would be necessary is reverting to a gold or silver standard.

 

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