A vending machine - it is a real surprising place to buy your gold from. You walk in front of it, put the money in, choose from all the options on the screen, push a few buttons and wait for the gold - as well as waiting for a chocolate bar or a soda - to come out. The only difference is that you have to pay a little bit more for purchasing a gold bar or coin.

Created as a marketing tool for a gold selling online company, the first vending machine was tested for a single day in 2009 in Frankfurt International Airport. The official launch was held in Abu Dhabi’s Emirates Palace hotel in May 2010 where, under gold plated ceilings, a gold vending machine was unveiled.

After the huge success and media attention given to this initiative, German entrepreneur Thomas Geissler decided to expand his business and create a gold vending machine network. In 2010 he chose nine more locations in Europe and 2 other in USA - in Las Vegas and Florida. His idea is still to make gold even more accessible by placing vending machines in common places such as fitness centers and train stations.

While the public responded positively to this new way of purchasing gold, the German business faces a few problems which might keep it from expanding. The first issue would be the security of the vending machines. As the devices are plated in gold on the exterior and are filled with 320 types of products on the inside - from gold bars to customized coins, they can be considered to be extremely reachable treasures.

Although until now no theft attempt was made, this doesn’t mean that it can not happen in the future. Also, it means that the locations chosen for the vending machines are extremely secured and exclusive.Which leads to another problem: the accessibility of the product sold. Unlike online gold selling, these machines are only available to the exclusivist customers of five star hotels or casinos and are restricted to certain locations on the globe.

For some traditional investors, buying from a vending machine could pose an interesting question: as the maximum gold bar weight is 10 grams is it wiser to buy gold in small quantities? Some specialists say that this is a sure way of building an education for investing in gold. Others, looking at the prices, agree that small quantity gold from vending machines is sold above market price.

As owner Thomas Geissler says, the gold bought from the vending machines around the world is mainly searched for the directiveness of the service. Unlike standing in line at the bank, and completing all kind of forms, the vending machine provides immediate assistance. But so do the internet services selling gold bars and coins online.

    Posted in Investing from Investor on 22. Mar. 2011