Shenzhen Jinhong Group has unveiled a groundbreaking concept, the “smart gold online mall,” which is transforming the way consumers engage in gold transactions. The launch of the advanced gold ATM in Shanghai’s bustling Global Harbor shopping mall has drawn significant attention, with customers reportedly making appointments days in advance to access the seamless service.
Gold ATMs: A Retail Innovation
Gold ATMs are quickly becoming a new retail trend, offering a unique experience where customers can trade gold jewelry. The machine allows users to insert their gold items, which are then weighed, melted, and evaluated on the spot. In one notable example, a customer inserted a 40-gram gold necklace and received a payment of 36,000 yuan (approximately $4,988) within 30 minutes, as reported by China Times. This efficient service is a direct response to the growing demand for streamlined and fast gold transactions.
How the Smart Gold ATM Works
Managed by Jinhong Group, the gold ATM is designed to accept gold jewelry weighing at least 3 grams and with a purity of 50% or higher. The process involves identity verification, melting the gold at temperatures exceeding 1,000°C, and conducting a second purity check. For its services, the machine charges a transparent fee of RMB 18 (roughly $2.5) per gram.
Expanding the Smart Gold Concept
Jinhong’s Shanghai Operations Manager, Xie Chengcheng, shared plans to expand its network of gold ATMs, aiming to deploy more than 100 machines throughout the city. These ATMs are already operational in cities including Beijing, Guangzhou, Shenzhen, and Hong Kong. Since its inception last year, the smart gold concept has spread to 40 cities across China, strategically placing the ATMs in banks, supermarkets, and retail locations to maximize visibility and convenience for customers.
Disrupting Traditional Gold Buying Models
The rise of gold ATMs is significantly altering the traditional gold market in China. Local “scalpers” and small-scale gold buyers have reported substantial losses due to the efficiency and transparency offered by the ATMs. Some have voiced concerns about shrinking cash flow and the difficulty of competing with the quick service provided by these new machines.
As Jinhong’s smart gold concept continues to grow, it marks a dramatic shift in the way consumers buy and sell gold, bringing greater efficiency and transparency to the market while challenging traditional business models.