Germany-based TG Gold-Super-Markt that launched the
world's first gold vending machine at the Emirates
Palace in Abu Dhabi last week, is eyeing a 5 per
cent share of the gold bar market in the Gulf
Cooperation Council (GCC), the company's Managing
Director Thomas Geissler told Gulf News.
"We are looking at
setting up similar facilities all across the GCC. We
chose Emirates Palace, one of the most marvellous
places in the world, to launch the Gold ATM.
However, this is only a beginning," said Geissler.
The gold vending
machine underwent testing at various locations
before being installed in the dome of Emirates
Palace where customers can buy gold bars weighing
from 1 gram to 250 grams.
"The pricing of
the bars is based on a mix of London and New York
spot gold markets, with a small premium built in,"
said Geissler. "Our data centre in Germany mixes the
spot gold prices prevailing on the two markets and
adds a little premium to give the customer a fair
value," he added. Geissler said the gold prices in
the ATM machine will change every 10 minutes.
A computer in the
machine ensures that the real-time prices are
updated in line with the online shop at Gold-Super-Markt.de.
This eliminates the risk premiums usually associated
with precious metal trading. No sales staff are
needed to operate the machine. All bars sold are 24
carat and every item comes with a money-back
Geissler said the
gold bar weighing 10 grams or more will have the
Emirates Palace hologram embossed on it.
"The gold ATM
machine has initially been placed at the Emirates
Palace for eight weeks. We will see how our gold
sales go during this period before setting a longer
term goal," Geissler added.