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Thursday, Feb 22, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

The Government of Egypt introduces gold dispensing ATMs

The machine continuously updates and dispenses one-gram bars in real-time to ensure accurate billing for the buyer

The Government of Egypt introduces gold dispensing ATMs
Syeda Fatima Taruj, director of Goldsikka, shows how to use India's first ever "gold ATM," delivering gold coins, in the southern city of Hyderabad, India. Image via Reuters.

The Government of Egypt just made it easier for its citizens to buy gold by selling gold bullion bars in automated teller machines (ATM).

The initiative is a collaboration between Banque Misr and e-payment technology firm Finway. It was introduced on Sunday in Cairo by Ali Moselhi, Ministry of Supply and Internal Trade, at the third NEBU International Gold and Jewellery Exhibition.

The machine will continuously update and dispense one-gram bars in real-time to ensure accurate billing for the buyer.

The minister noted that efforts are underway to position the North African country as an exporter of gold to the Gulf countries, Italy and the rest of Africa, while also mentioning that citizens would be able to conveniently purchase gold bars, thereby democratizing access to the precious metal.

“The gold bar is requested from the ATM machine, placing the money at the current price of gram in Egypt, and immediately upon taking the money, the citizen gets the required gold bar in the grams they specified,” said Nagy Farag, the advisor to the Minister of Supply and Internal Trade for gold affairs.

Read more: Russia to build major African gold refinery in Mali’s capital city Bamako

Read more: Calibre Mining secures largest undeveloped gold resource in Atlantic Canada through $345M Marathon Gold merger

The practice of gold dispensing ATMs has been around for over a decade

Egypt isn’t the first country to introduce the idea of buying gold from ATMs.

The practice originated in Germany and gained popularity as a novel way to make gold more accessible to the general public. It was first conceived by German businessman Thomas Geissler, who recognized the potential of combining technology and the growing demand for precious metals.

In 2010, the world saw the first gold-dispensing ATM, aptly named “Gold to Go,” installed in the Emirates Palace Hotel in Abu Dhabi, United Arab Emirates. Since then, the concept has expanded to various parts of the world, providing people with a unique and accessible way to invest in and enjoy the luxury of gold.

The first gold ATM’s opened up in Korea in late 2022, selling USD$19 million worth of gold from convenience stores in the nine months leading up to May according to convenience store operator, GS Retail. The retailer introduced the gold bars through vending machines at five of its stores last September.

The machines provide customers with five different sizes, ranging from 0.13 ounces to 1.3 ounces. The company adjusts the prices daily to align with the international valuation for gold as it fluctuates.

The price of gold is presently $2,018 per ounce. According to the World Gold Council, gold investment demand for the third quarter of 2023 reached 157 tonnes, which marked a 56 per cent year- over-year increase. Despite this, demand for gold actually fell in Europe, reaching 296 tonnes.

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