Gold prices are hitting unprecedented levels amid global market tensions, a weakening dollar, and surging demand for fast, transparent gold recycling solutions such as Shanghai’s newly unveiled “gold recycling ATM”.
In Shanghai, the city’s first gold ATM, located in the bustling Global Harbor shopping mall, has drawn massive crowds. Operated by Shenzhen-based Kinghood Group, the machine offers users a rapid, transparent method to recycle gold jewelry, with payouts processed in just 30 minutes. Demand has been so intense that appointments are now booked through the upcoming May holiday, and social media has been abuzz with footage of long queues.
The process is straightforward: customers deposit gold items (over 3 grams and at least 50% purity), which are then weighed, melted at over 1,000°C, assayed, and appraised. A 40-gram necklace, for example, was recently valued at 785 yuan ($108) per gram, yielding a payout of over 36,000 yuan ($4,900) after deducting a small service fee.
Kinghood, a pioneer in China’s gold industry since 2019, has integrated recycling, purchasing, and customization services into its Smart Gold Store concept. Following the success of its Shanghai launch, the company plans to expand aggressively, deploying more than 100 gold ATMs across major Chinese cities.
This local enthusiasm mirrors a broader global gold rush. Internationally, gold prices soared to a fresh record above $3,384 per ounce, fueled by mounting concerns over U.S. trade policies, political interference in the Federal Reserve, and fears of an escalating tariff war under former President Donald Trump’s proposed policies.
With several financial markets closed for Easter, trading volumes remained thin. Nevertheless, the safe-haven appeal of gold has intensified. Trump’s aggressive stance on tariffs—particularly against China, which faces levies as high as 145%—has rattled global confidence. Meanwhile, tensions with the Federal Reserve added to investor anxiety after Trump criticized Fed Chair Jerome Powell’s caution on inflation risks, raising concerns about the Fed’s independence.
The dollar weakened notably against key currencies, including the yen and the euro, further boosting gold’s allure. French Finance Minister Eric Lombard noted, “Donald Trump has hurt the credibility of the dollar with his aggressive moves on tariffs… If Powell is pushed out, this credibility will be harmed even more.”
Back in Shanghai, the convergence of rising global gold prices and the availability of cutting-edge recycling technology is disrupting traditional local gold-buying practices. Small-scale gold buyers and scalpers reported falling business, unable to match the ATM’s competitive rates and efficiency.
Industry experts urge caution, however. Xu Weixin, a member of the Shanghai Gold Association, advised residents to think carefully before selling their gold assets. “There is still strong upward momentum for gold, mainly driven by central banks and institutional investors accelerating their purchases,” he said.
As global uncertainty deepens, gold’s enduring reputation as a store of value is shining brighter than ever — from Shanghai’s shopping malls to the world’s financial markets.
Related topics:
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
- Qilu Bank Enhances Support for Small Businesses with Innovative Financial Tools
- Bitcoin Poised for a Surge Amid Gold’s Delivery Delays, Expert Claims
