China’s gold ATM has grabbed the attention of the Chairman of RPG Group, Harsh Goenka, who has praised the concept but pointed out that traditional gold lenders in India may need to adopt a new business plan if this model is introduced in the country.
The Shanghai-based gold ATM melts gold, checks its purity and weight, and then deposits the equivalent amount directly to the seller’s bank account within 30 minutes.
In a post on X, Goenka described how these ATMs operate and wrote, “Gold ATM in Shanghai: Drop your jewellery, it checks purity, melts it, calculates value, and credits your account instantly.”
Goenka described these ATMs as transparent and exploitation-free, but added that this technology could pose a risk to gold lenders in India. “If this comes to India, traditional gold lenders might need a new business model. Transparency in. Exploitation out,” Goenka remarked.
Gold ATM in Shanghai: Drop your jewellery, it checks purity, melts it, calculates value, and credits your account instantly.
If this comes to India, traditional gold lenders might need a new business model.
Transparency in. Exploitation out.
Several social media users have reacted to his post, raising concerns regarding the transparency of these ATMs.
“If India were to allow it, no one would wear jewellery in the streets, and chain snatching would be at an alarmingly high rate! Unlike China, we don’t have good law and order in our cities—sad but true!” commented one user.
“Very few will put their gold ornaments into a shredder without an initial quote. Gold loan or sale transactions need a personal touch. It won’t work like this even if it appears highly efficient on paper,” said another user.
“Sounds like a Chinese scam,” added another.
The gold ATMs have been manufactured by Shenzhen-based Kinghood Group. The ATMs are installed at the Global Harbor shopping mall in Shanghai, China. The device scans, weighs, melts, and tests the purity of the gold item. These ATMs melt gold at 1,200 degrees Celsius. Once the evaluation is complete, the equivalent cash amount is transferred directly to the user’s bank account within 30 minutes. No paperwork or ID is needed for the work. The ATM accepts gold pieces that weigh more than three grams with at least 50% purity.
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