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Strong Demand Expected for Gold ATM Machines

Demonstration of the gold dispensing ATM in Abu Dhabi.
CNBC
Demonstration of the gold dispensing ATM in Abu Dhabi.

A commodities trader told CNBC Thursday that ATM machines selling gold bars and coins, scheduled to be installed in the US by November, will become popular.

“These will probably do well as a novelty at first. We really believe that longer term this will seriously catch on," said Kevin Kerr, president of Kerr Trading International, of the machines' prospects.

The gold-dispensing machines will be installed first at casinos and hotels in Las Vegas and Florida and then throughout the country. Each ATM can hold $3 million worth of the precious metal when it’s fully stocked.

“There’s a huge demand from the US. We’ve had more than 500 inquiries in the last two to three weeks,” said Thomas Geissler, who created the machine called Gold to Go.

Gold has been posting record highs: At midday Thursday, it was selling for $1,335.60 an ounce.

The machines update real-time gold pricesevery 10 minutes and can dispense 10 different products of up to 8 ounces apiece. Those include small gold bars and gold coins, such as the South African Krugerrands, Australian Kangaroos and the Canadian Maple Leaf.

According to Reuters, Gold to Go launched its first gold ATM in Abu Dhabi's Emirates Palace hotel in May. They are now operating in luxury hotels in Abu Dhabi, Bergamo and Madrid, as well as locations in Germany.