Gold-dispensing ATMs to hit SA's malls

The first GOLD TO GO ATM is expected to be open for business at Cape Town's V&A Waterfront this year, with German developer Thomas Geissler saying on Tuesday, 25 January 2011, that the security capabilities were good.

Without elaborating on the security technology underpinning the concept, Geissler, from Geissler C-B-T, says: "Our security concept is very well done, so we are pretty sure that GOLD To GO will come this year to the Waterfront in Cape Town."

Rolling in gold

The concept began rolling out in 2009, when the first gold-dispensing ATM was installed at Frankfurt's airport. There are now machines in 11 locations in Germany.

The concept also seems to be taking off in the US, with machines being planned for 250 locations across the country, while ATMs are also visible in Spain and France and in the Arab world.

Geissler says his company is setting up a machine on Tuesday on the 124th floor of the Burj Khalifa in Dubai - "the highest place a vending machine has ever been placed".

It is an interesting concept. Cash, or a credit card, is put into the machine and a packaged gold coin spews out the other end. The dispensed gold can include Krugerrands or other small gold bars and coins.

Prices are based on spot prices for gold and updated every ten minutes.

Concerns

By late 2009, ATM bombings were down on 2008 in SA, a year where SA made the international press for offering "innovations" to global syndicates in the form of ATM bombing techniques.

A blog out of Sydney in 2008 explains how a bomb squad had to keep crowds at a distance in a shopping mall due to fears that an ATM would explode after it was filled with gas. Less than two hours earlier, robbers blew up three ATMs at different locations in Sydney's southwest.

Gold analyst Dave Levenstein has his doubts about whether the gold ATM idea can be rolled out extensively in SA due to crime. He is also worried that large amounts will be spent - R10,000 and upwards for coins and Krugers - which also raises risks for people after the purchase.

But that doesn't mean the concept will not help boost coin sales in SA and around the world, though Levenstein feels some coin shops may use it more as a "gimmick".