Finance sector news

‘Gold to go’

19/6/2009
In Germany, gold is an established way for investors to keep personal wealth. Germans are attracted to the safety of solid gold, which for years has been a relatively stable means of payment and exchange.

Now travellers across Germany will soon be able to buy gold as easily as picking up a chocolate bar. Plans have been announced to install gold vending machines at railways stations and airports across the country. The venture is by TG-Gold-Super-Markt, a company based near Stuttgart.

Since the global economic crisis shook confidence in other investments there has been a dramatic rise in retail interest in gold which TG-Gold-Super-Mark wants to exploit. The company is installing the machines to cater for anyone willing to buy gold at around 30% higher than the spot market prices for the cheapest product. The 'Gold to go' machine at Frankfurt Airport has offered shoppers a 1g wafer of gold for €30, a 10g bar for €245, or gold coins. The price is updated every few minutes.

Thomas Geissler, who owns the company says, "German investors have always preferred to hold a lot of personal wealth in gold, for historical reasons. They have twice lost everything. Gold is a good thing to have in your pocket in uncertain times."

Within three months TG-Gold-Super-Markt plans to have a 'substantial number' of machines throughout Germany, Switzerland and Austria, with hopes for 500 around the world. Geissler is looking at a franchise model in which clients buy the machines, which cost €20,000 and pay TG-Gold to service them.