Shanghai has introduced its first “gold recycling ATM” at the Global Harbor shopping mall, sparking significant public interest, especially among older residents looking to cash in on long-held gold jewelry as prices soar.
The new machine offers a fast, transparent process where users can deposit their gold items, which are then weighed, melted, and assayed. For example, a 40-gram gold necklace was appraised at 785 yuan ($108) per gram, yielding a payout of over 36,000 yuan ($4,900) within 30 minutes. The service is operated by Kinghood Group, a Shenzhen-based jeweler, and is designed to process gold items weighing over 3 grams with a purity of at least 50%.
The recycling process includes identity verification, melting the gold at temperatures exceeding 1,000°C, and conducting a second assay to determine purity. A service fee of 18 yuan ($2.50) per gram is deducted before funds are transferred to the user’s bank account.
International Recognition for Kinghood
Kinghood has been a trailblazer in China’s gold industry since 2019, debuting its first “gold ATM terminal” within the Smart Gold Store concept, which integrates purchasing, customization, and recycling services. The company’s global version of the Smart Gold Store features advanced hardware, including high-precision electronic scales and a universal detector with an accuracy of 0.01%. The system supports mobile phone registration in over 200 countries and offers multi-currency payment options. Kinghood has received international recognition for its innovation, winning the Manufacturing Innovation Award at the 2024 JWA Sustainability Awards.
The company plans to expand its Smart Gold Store model, with plans to deploy over 100 gold ATM machines across Shanghai and additional installations in cities like Beijing, Guangzhou, Shenzhen, and Hong Kong. As of September 2024, Kinghood had installed machines in 40 cities across China.
Market Disruption and Increased Public Interest
The introduction of gold ATMs has disrupted traditional gold-buying practices, with local “gold scalpers” and small-scale buyers reporting a decline in business. The ATM’s efficiency and transparency have attracted customers, and its service speed is seen as unmatched by many traditional outlets. A sales representative from China Gold reported a quieter customer traffic flow, citing the ATM’s appeal in terms of pricing and service speed.
The launch of the gold ATM coincided with a significant rise in gold prices. On April 16, the day the ATM launched, COMEX contracts were trading above $3,400 per ounce, and domestic gold prices surpassed 1,000 yuan ($137) per gram. The Shanghai Gold Exchange reported real-time prices above 788 yuan ($108) per gram, providing an ideal opportunity for gold holders to liquidate their assets at unprecedented prices.
Xu Weixin, a member of the Shanghai Gold Association, noted that while the rising gold prices have driven public interest in cashing out, he advised caution. “There is still strong upward momentum for gold, driven by central banks and institutional investors accelerating their gold purchases,” he said, encouraging individuals not to rush into selling their holdings.
The growing interest in recycling gold, coupled with rising prices, marks a shift in the public’s relationship with precious metals, particularly as gold’s role as a store of value gains renewed significance amid global economic uncertainty.
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