September 26th, 2011
07:20 AM GMT
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(CNN) – China’s wealthy now can get up to 2.5 kilograms of gold via ATMs in the city’s upscale clubs and private banks, state media reported.

The machines made their debut in a Beijing shopping district on Sunday, according to AFP. Limit for maximum withdrawal is set at 1 million yuan, or about $157,000 worth of gold. Cash or credit card accepted.

The machines, manufactured by TG-Gold-Super-Markt.De in Germany, first debuted in Europe in 2009 and by late 2010 arrived in the U.S.

Since the credit crisis, the value of gold has skyrocketed as a safe haven investment choice, selling for just over $500 an ounce in 2007 to recently cresting near a record high of $1,900 per ounce in August.

However, the timing of the new ATMs for China’s nouveau riche could be better. In recent days gold prices have plummeted, dropping $100 on Friday alone – the steepest drop since 1980.

Why the sudden drop? Fears of the slowing of the global economy raises the specter of deflation. "People are quickly coming to the realization that gold does very bad in a deflationary environment," Keith Springer, president of Springer Financial Advisors, told CNNMoney.

On Monday, gold was trading at $1,659 per ounce.



soundoff (26 Responses)
  1. WinterStars

    This is so pathetic! Who will benefit from this pointless and stupid thing?? China should care first of all for its people and its animals and stop eating everything that moves or flies!

    September 26, 2011 at 9:27 am |
  2. Lol@CNN

    @the dude above. You said China should care for its people, doesn't that sound communism to you?! Aren't you against communism? In a capialist society, those with money can do as they please. Isn't it the way Americans want it? Stop being a dumb yank and educate yourself

    September 26, 2011 at 10:49 am |
  3. Kyle H. Davis

    Lol@CNN – It's a bit different to compare US capitalism and China. In the US, if a select few were flying their own personal, solid gold space shuttles to work every day... it would get the same response. In China, a nation in which uses $1.25 a day as a poverty level... having gold dispensing ATM's is just as insane. But, being a resident of China, the simple idea of a guy driving around a small city in a $100,000 automobile is just as insane.

    In the US, there is 97% college graduation rate, 99% housing, 86% car ownership... the ONLY difference between the "poor" and "rich" in the US, is the value of their belongings... not what they have/have not.

    The failed policies of the Party have done nothing to improve the overall quality of life in China. There is no infrastructure development, and no legislation improving quality of life. In the US, more restaurants are closed because of health inspections BEFORE someone gets sick – in China, they close only AFTER someone gets sick, if they are closed at all.

    But, if you want to defend against insults to China, you should be standing behind us, pointing out the flaws in the system; because it is those super rich in China that are doing more insult to China than anyone else. Don't simply giving into hypocritical, nationalistic, knee-jerk reactions.

    September 26, 2011 at 11:14 am |
  4. yay

    Ya, everyone woke up one morning after gold hit an all-time high, and 'realized' the risk of deflation.

    September 26, 2011 at 11:21 am |
  5. ohh...

    lol...just another pointless machine

    September 26, 2011 at 11:50 am |
  6. elipslina

    news never say never....

    September 26, 2011 at 1:24 pm |
  7. Dex

    DOUBLE DIP INEVITABLE? ... economists are warning of a 1937-like plunge back into recession ... http://canuckreport.ca

    September 26, 2011 at 2:18 pm |
  8. janm

    nice machine but does it make coffee?

    September 26, 2011 at 2:38 pm |
  9. TS

    The first one in the United States was located in Town Center Mall in Boca Raton, FL. The hyperlink above in the article gives a link to the video.

    September 26, 2011 at 2:47 pm |
  10. RG

    CNN editor - why are you not posting my earlier submission?Are my ideas not acceptable?

    September 26, 2011 at 3:34 pm |
  11. lolface

    Kyle H. Davis – Wow way to be an idiot, you do know that only 40% of Americans graduate college right? Housing is in the 30% and the difference between the rich and the poor is about 3000x pay, in fact the difference between the middle class and rich are almost the same as poor and rich. There is even an epidemic of malnutrition hitting the U.S. , something only seen in 3rd world countries.
    The illusion that you and the rich are no different is given to you by the rich to ake you believe that you could some day do the same if you tried hard enough, but the sad reality is that, that dream has been squashed by the rich.
    Don't be a tool running after the carrot dangling in front of you because the rich guy strapped a stick to your back.!

    September 26, 2011 at 4:07 pm |
  12. lolface

    I bet those girls on the side are cheaper than the gold, thanks china lol

    September 26, 2011 at 4:09 pm |
  13. Russel Jeffords

    I would pay $100,000 for two weeks with either (or both) of the young ladies depicted.

    Yummie!

    September 26, 2011 at 5:56 pm |
  14. That'snotTrue:[

    Lol Kyle H Davis, stop giving lectures to others when you're failing at what you're lecturing, America is't all sunshine, lollipop and rainbows... or have you been away for the last five years. The country is still in deep debt, so your argument have no merit and your numbers are wrong any EDUCATED north American will tell you that. Wake up!!!

    September 26, 2011 at 9:53 pm |
  15. Kyle H. Davis

    lolface/That'sNotTrue (And the rest of the 五毛党): I admit to the mistake on graduation rates however – Only 1% of the US population is homeless. And when it comes to education, the US is still in the top 10 nations based on graduation rates. And the rest of those numbers stand.

    You COMPLETELY missed the point on difference between rich/poor. OBVIOUSLY there is a difference in INCOME, but there is NOT such a great gap in LIFESTYLE, and what people have. I may not have a gold plated toilet, but I still have one. I might not have a Ferrari, but I have a Ford. I might not have a mansion in the hills, but I have a home. I might not have a 50" plasma TV, but I have a TV. I might not have a professional kitchen, but I have a stove, microwave, refrigerator, and CLEAN RUNNING WATER.

    Nearly 80% Computer ownership. 80%+ mobile phone ownership.

    And you are missing the BIGGER picture – In China, you can literally walk from a dirt floor, cinder block home, with no running water, no phone service... where they cook over an open fire, by burning twigs and branches they have had to go out foraging for... where they crap in a communal outhouse, with no plumbing... where a family sleeps on a communal bed, with the only heat being the heat ventilated from their cooking area... Where they wash their clothes in a large plastic bowl, by hand, and hang it out on bushes and trees to dry... with livestock roaming the dirt roads surrounding it... And have ALL of that within 50 meters of a multi-floored building housing the super rich of China.

    You do NOT see ANYTHING like that in the US.

    September 27, 2011 at 1:16 am |
  16. Kyle H. Davis

    And every time you try to push the view back on someone else, you are only defending the misplaces policies of the Party. You are DEFENDING the massive loss of face put on the people of China by the Party.

    China hasn't even gone through an agricultural revolution... and you are defending the Party that has restricted its development so.

    When the ownership of a mule is what defines someone as being a "rich" farmer... in the worlds second largest economy... something is clearly wrong.

    September 27, 2011 at 1:21 am |
  17. Dawn

    why is this even a story. Beverly Hills, Boca Raton and Manhattan have had Gold ATMs for at least 10 years. You just need to know where to look. Weird.

    September 27, 2011 at 2:03 am |
  18. lemlem

    china has woken up. never to sleep again. gold is the future ladies and gentle men. gold brought forth paper currency and is going to survive trough its downfall through inflation a

    September 27, 2011 at 1:30 pm |
  19. lemlem

    china has woken up. never to sleep again. gold is the future ladies and gentle men. gold brought forth paper currency and is going to survive trough its downfall through inflation

    September 27, 2011 at 1:31 pm |
  20. Big_Kev

    Kyle H. Davis -Rather than putting up made-up figures in here, you should just go and put out your trash can instead. Stop insulting the readers' intelligence in here. Get the facts right or get a move on. But don't waste smart readers' time in here. We have better things to do with our time.

    September 27, 2011 at 2:46 pm |
  21. Id3_umar

    cost effectiveness; very high, i thing they are doing more of advert than the reel business

    September 27, 2011 at 3:15 pm |
  22. Kyle H. Davis

    I admitted to the ONE mistake, the rest stand. And, thanks for missing the whole point.
    Keep trying...

    September 28, 2011 at 12:22 am |
  23. Amir_ul3

    You all are seriously missing Kyel's point. Regardless of the figures, a gold dispensing ATM in a developing nation that cannot feed its people and still receives billions in aid each year is ridiculous. He simply pointed out that to compare having these ATMs in China, to having them in the US, is ignorant. And it is.

    The gap between rich and poor, in China, is far greater than that of the US.

    September 28, 2011 at 4:15 am |
  24. pooja sinha

    bhen ke lodo ye use less hogi.........gold ko gand me dalenge..............kya use karoge uska........koi lut ke le gaya to or panga hoga............

    September 28, 2011 at 9:16 am |
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