Gold Vending Machines

[Fergal]

The German company TG-Gold-Super-Markt is trialling gold vending machines at Frankfurt Airport. The machines which follow the same concept as chocolate bar and soft drink vending machines, allow customers to purchase solid gold by credit card.

From the company's website;

GOLD To Go! Our vending machine is filled with gold bars of 1 gram in the standard version. Alternatively, gold bars of 5 and 10 grams as well as gold coins can be purchased.

A 1g wafer of gold costs about €30 and a larger 10g gold bar costs approx €245. A Financial Times reporter has claimed that he was given the wrong change by the machine and that the prices of the cheapest product are about 30% higher than market value. TG-Gold-Super-Markt explained that the wrong change was a result of an error in the prototype machine that would be resolved before full product roll out.

Given the increased interest in buying gold as a commodity, arising from volatility in world financial markets this business may do well.

What do you think, would you buy gold from a vending machine? I know I'd be tempted.

[Norrad]

LOL, and that will open a whole new breed of vending machine scammers. As a kid I used to love finding ways to get a free or very cheap drink out of vending machines, now this is a vending machine that adults would love to beat.

[Fergal]

I'm sure there are plenty of people who would love to get away with all that gold.

The fact that they are being located in airports would make it difficult, given the level of security found in modern airports. Interestingly, machines are also fitted with CCTV cameras to deter criminals from using them for money laundering purposes.

[JBMedia]

Interesting.. although I do say they might want to add a little more security to the vending machines themselves, since they are holding gold...

If I ever saw one of these I would definitely have to grab myself at least a 1g wafer

[Fergal]

Originally Posted by JBMedia

...If I ever saw one of these I would definitely have to grab myself at least a 1g wafer

The novelty value is a factor that could be very important to the success of these gold vending machines. Gold is not something you would normally buy on impulse, these machines could change that. Tempting isn't it?

[neo666]

hey ,its difficult the CC away from the wives!, now add this to the list of things that can be bought with a cc, you are making life more difficult !
nice concept , yes it would tempt lot of people, what about the rates, with forex and gold having intraday highs and lows,does the vending machine have different rates too,at different times of the day?

[Fergal]

Welcome to Business Advice Forum neo666! Interesting question, yes the vending machine prices change in real time with changes in commodity prices.

The company also claim that their prices are 20% cheaper than buying gold at a bank counter.

[JBMedia]

Originally Posted by Fergal

The novelty value is a factor that could be very important to the success of these gold vending machines. Gold is not something you would normally buy on impulse, these machines could change that. Tempting isn't it?

Very tempting .. Now instead of me having an appetite for a chocolate bar, I'm going to have an appetite for a gold bar!!! Geez, so much more expensive. lol

[jwhitakr]

Originally Posted by JBMedia

Very tempting .. Now instead of me having an appetite for a chocolate bar, I'm going to have an appetite for a gold bar!!! Geez, so much more expensive. lol

LOL. I too would be tempted to go for a gold bar instead of a chocolate bar. I think this is a good idea for expanding the typical vending machine concept. With the lower operational costs (no need to pay a person to exchange the money) it would also be a nice way to attract customers.

This idea looks like it is GOLD.

[Fergal]

Originally Posted by jwhitakr

...This idea looks like it is GOLD.

Perhaps TG-Gold-Super-Markt have the Midas Touch!

[Joehema]

I think this is stupid on the company, If I was rich I would buy up all the gold I can. Once the US Economy falls.

Paper Money= Nothing
CC = Nothing
Gold/Sliver = Always has a good value.

Look at how much gold china is buying, I think they are on to something

[Nazreen]

Selling something that is in demand like gold is a good idea. What I don't understand is why they're selling their gold at prices that are 20% cheaper than market value. Wouldn't they be losing money by doing this? Usually, vending machines sell stuff at a price that is higher than buying from a grocery or store.

[Fergal]

Originally Posted by Nazreen

... What I don't understand is why they're selling their gold at prices that are 20% cheaper than market value...

They claim that they can sell 20% cheaper than what it would cost you at a bank because they don't have the staff handling costs that banks have.

[scifi]

pretty good idea..!!!
Vending machines for gold .....on the lines of chocolate & that too cheaper than available at most of the places i.e . means competitive prices too...Gr8 concept to conceptualize & commercialize the most volatile commodity in the world..!!!

[jwhitakr]

Originally Posted by Joehema

I think this is stupid on the company, If I was rich I would buy up all the gold I can. Once the US Economy falls.

Paper Money= Nothing
CC = Nothing
Gold/Sliver = Always has a good value.

Look at how much gold china is buying, I think they are on to something

If you really thought the US economy was going to "fall", and you thought that paper money would become worthless, then it wouldn't matter whether you were rich or whether you had only a few dollars to your name ... you'd invest all of your money in gold/silver.

Of course, that would be stupid.