Since the beginning of the global economic meltdown, China has been purchasing and producing commodities at a rapid pace. Digital Journal
has reported in the past that its central bank has bought gold bullion and state-television outlets
have even urged citizens to acquire silver bullion.
has also reported of gold ATM machines being installed in Germany and the United States. Now, China has unveiled its first gold ATM machine in Beijing’s shopping district of Wangfujing Street.
Although it was opened for business on Sunday, it was shut down a few hours later because it was not producing receipts for customers. Operations manager of Gongmei Gold Trading said the technical issues were being repaired, but did not note when the machine will be up and running again.
The machine, built by Germany's Ex Oriente Lux AG
, allows customers to purchase one million yuan ($157,000) worth of gold bars and coins in various sizes at regular up-to-date market prices. Gold can be purchased by cash or credit card.
“The people in Asia have a unique taste for gold, especially in China and India, and the channels of investment in China are way too narrow right now,” said Zheng Ruixiang, Gongmei president, in an interview with China Daily
. “To puts residents’ cash deposits into gold deposits can reduce cash flow and reduce pressure on commodity prices.”
Chinese officials are planning to install more than 2,000 more machines over the course of the next two years. They will be placed in secure locations, such as private clubs, financial institutions and gold stores.
Since 2000, gold has risen astronomically from $250 per ounce to as high as $1,900. A report from the World Gold Council
suggested that China acquired more gold than India.