Gold Vending Machine in Germany

Shoppers in Germany will soon be able to buy gold as easily as bars of chocolate after a firm announced plans to install vending machines selling the precious metal across the country.

Gold sold like chocolate from German vending machines (6/17/09, Telegraph)

"TG-Gold-Super-Markt aims to introduce the machines at 500 locations including train stations and airports in Germany.

"The company, based near Stuttgart, hopes to tap into the increasing interest in buying gold following disillusionment in other investments due to the economic downturn.

"Gold prices from the machines – about 30 per cent higher than market prices for the cheapest product – will be updated every few minutes.

"Customers using a prototype "Gold to go" machine at Frankfurt Airport on Tuesday had the choice of purchasing a 1g wafer of gold for €30, a 10g bar for €245, or gold coins."

"Interest in gold has risen during the financial crisis, particularly in Germany, according to GFMS, the London-based precious metals consultancy.

"Retail demand reached an estimated 108 tonnes in 2008, up from 36 tonnes in 2007 and 28 tonnes in 2006."

Interesting idea, but 30% premium is too stiff. Physical gold still commands premium over paper gold, but less than when the financial crisis was at a sheer panic stage (September-October 2008).

Germany has 3,412 tonnes of gold reserve, the second largest in the world after the United States who has 8,133 tonnes (or we so hope). I keep hearing rumors on the Internet that Germany is demanding the return of their gold in US custody...

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