On the outside, it looks like an ordinary cash machine, but it is India's first 'gold ATM', dispensing gold coins at the touch of a button in a country where the precious metal is considered a safe and attractive investment.
The 'gold ATM', set up in the southern Indian city of Hyderabad, is the creation of GoldSikka and features gold coins weighing between 0,5 and 100 grams.
A 100 gram coin is worth about $7.000, making it even more imperative that users keep their 'pin' number well hidden from anyone near them at the machine.
"Instead of going to jewelry stores, one can come here directly and get coins from here," said Pratap, vice president of GoldSikka, who gave only his first name.
India is the second gold consuming country in the world. Two-thirds of the demand for gold in India comes mainly from non-urban areas, where jewelery is the most common form of investment.
The 'gold ATM', which started functioning on Saturday, can store up to 5 kg of gold. Customers insert their credit cards into the machine and select the coin weight.
“The whole transaction took less than a minute. So anyone who is looking for an investment, I think this is the best way to get gold,” said a customer queuing at the ATM to buy gold coins.
Source: RES-EAP