A futuristic spin on an age-old tradition is making waves in Shanghai—and it’s all thanks to a vending machine that melts gold on the spot. As global gold prices soar to historic highs, residents are lining up in droves to cash in their jewelry through a high-tech “gold recycling ATM,” which has gone viral across social media platforms in China.
The phenomenon began shortly after gold prices reached a new record of $2,141.79 per ounce, breaking a peak that had stood since December. In a climate of economic caution and investment uncertainty, the machine has arrived at just the right moment for many looking to convert gold heirlooms into quick cash.
How the Gold ATM Works
Installed at Shanghai’s Global Harbour shopping mall, the sleek gold recycling machine is part of Shenzhen-based Kinghood Group’s “Smart Gold Store” concept. The ATM-style kiosk accepts gold items over 3 grams with a minimum purity of 50%. Customers place their jewelry into a tray, where the machine weighs it, melts it at over 1,000°C, and tests its purity—all within half an hour.
Users are updated on the process via a live screen display. After deducting a small service fee (about $2.50 per gram), the machine deposits the equivalent cash directly into the user’s bank account. No haggling. No waiting days for a quote. Just real-time evaluation and instant payment.
Viral Buzz and Social Media Frenzy
It didn’t take long for the internet to catch wind of the machine. Videos showing long queues of residents—many of them elderly—spread rapidly on Weibo, Douyin (China’s TikTok), and Xiaohongshu. The footage shows people clutching bags of old jewelry, eagerly watching their items be melted down in front of them.
One user posted, “I watched my grandma trade in a necklace from her wedding 50 years ago and get over 10,000 yuan in minutes!” Another commented, “Why would anyone go to a pawn shop anymore? This is so much clearer and quicker.”
This digital enthusiasm helped turn what could have been a niche service into a full-blown trend, turning gold selling into an accessible and even trendy experience.
Changing the Game for Traditional Gold Traders
Not everyone is thrilled by the buzz. Traditional gold shops and small-scale dealers are already feeling the impact. “We can’t compete with that kind of turnaround time,” admitted one jewelry store owner in Shanghai. “Even though our rates are sometimes better, people are choosing convenience over price.”
The ATM’s popularity is not just a gimmick—it’s part of Kinghood’s broader strategy. The company has already placed similar machines in over 40 cities across China and is preparing to expand further into hubs like Beijing and Guangzhou. Plans for over 100 new installations are underway.
The Timing: Gold’s Meteoric Rise
The spike in demand for these machines is closely tied to the rally in gold prices. On April 16, 2024—the day the Shanghai machine went live—domestic gold rates had passed 1,000 yuan per gram. This spike was fueled by ongoing geopolitical tensions and increased demand from global central banks, which continue to stockpile the precious metal as a hedge against inflation.
Analysts say more people are seeing gold not just as a sentimental keepsake, but as a liquid asset that can offer real financial relief.
Still, experts urge caution. Xu Weixin from the Shanghai Gold Association noted, “We’re at historic highs now, but no one can predict what will happen next. Those selling might benefit today, but they should weigh their long-term options.”
The New Face of the Gold Rush
What’s remarkable isn’t just the tech—it’s the people behind the trend. Older women, often the caretakers of family heirlooms, are leading the wave, turning wedding bands, old bangles, and inherited trinkets into cash for daily use, savings, or helping family members.
This viral ATM has not only revolutionized gold selling—it’s sparked a cultural moment. By combining real-time technology, financial pragmatism, and viral visibility, Shanghai’s gold ATM has given rise to a new kind of gold rush. And with machines set to pop up in more cities soon, this trend shows no signs of cooling down.
In a world where speed and simplicity are prized, turning gold into instant cash might just be the new normal.