ATM delivers gold.

This should bring Christmas joy to Terje, but it is not here yet.

From “Newsmax:”

BOCA RATON, Fla.  — Shoppers who are looking for something sparkly to put under the Christmas tree can skip the jewelry and go straight to the source: an ATM that dispenses shiny 24-carat gold bars and coins.

A German company planned to install the machine Friday at an upscale mall in Boca Raton, a South Florida paradise of palm trees, pink buildings and wealthy retirees.

Thomas Geissler, CEO of Ex Oriente Lux and inventor of the Gold To Go machines, says the majority of buyers will be walk-ups enamored by the novelty. But he says they’re also convenient for more serious investors looking to bypass the hassle of buying gold at pawn shops and over the Internet. …

Shoppers insert cash or credit cards and use a computer touch-screen to choose the weight and style they want. The machine spits out the gold in a classy black box with a tamper-proof seal.

Each machine, manufactured in Germany, carries about 320 pieces of different-sized bars and coins. Prices are refigured automatically every 10 minutes to reflect market fluctuations. At prices from one point earlier this week, a two-gram piece cost about $120, including packaging, certification and a 5 percent markup. An ounce cost about $1,470. …

The people behind introducing this to the US are talking of gold being an alternative or parallel currency within five years. This kind of talk has been doing the rounds for some time, and will no doubt continue to do so.

There are different dynamics at play in the current situation however, with the population generally becoming more alarmed as to the future of the US dollar, and the growing possibility of double dip recession and the whole country going to shit. Recent polling indicates that only 23% of Americans think the country is on the right track, Vs 71% for wrong track.

Certainly the $600 Billion QE2 combined with the massive Omnibus spending bill fueled by over 6,000 items of pork, gives little room for optimism in the near future. While Omnibus was the price of compromise over the extension of the Bush tax cuts, that price was too high especially as it allows the return of the class envy death tax.

It should be remembered that the current activities of Congress are the last and final fling for people voted out of office at the last election, not only in Congress but nationwide. There is one fairly bizarre example in Wisconsin where a state legislator was given leave from prison to vote for lame duck legislation.

This is causing outrage and there are efforts afoot to restrict the activities of legislatures during this session in the future. There will be a wholesale slaughter of Democrats and establishment Republicans in the elections of 2012 after this.

16 thoughts on “ATM delivers gold.

  1. the crack-up boom is already happening, there is already places in the US where you can buy and sell using silver, gold and copper coins, due to all of these metals being demonetised, their price is far lower than it will be as more and more people adopt and use it as currency. precious metal currency values are always a combination of relative exchange rates in their melt-value/numismatic as well as a further stack on top of that of their monetary value, that is, the readiness to which you can apply their use, their ‘marketability’ as it is often termed.

    people talking about 10k gold and 500 dollar silver may seem somewhat kooky to some, but i don’t think they are really quite seeing what is going to happen. if the us dollar goes into hyperinflation, something it has never done before, it will be like wiemar republic millionen marks situation… but globally. virtually every national government in the world has massive stacks of us dollars (both notes and ledger entries of fiduciary media) and these holdings devaluing is part of the reason why nobody’s noticing yet this devaluation process going on, because all currencies are falling, weighed down by all that us dollar that is used to buy the oil and numerous other resources. the prices of gold, silver, copper, oil, wheat, and so forth, these prices all are climbing, the reason is they are all primary capital goods which are always the first in line to receive the changes of prices in the price structure. inflated currency takes time to percolate.

    right now most of the inflated us dollars are in the hands of the bailout recipients. they are swapping the dollars they know for a fact are worth way less than the current exchange rates on the various commodities and currencies, for gold and silver. comex, as i heard yesterday, has 106 million ounces of silver, but claims for 720 billion (american, ie thousand million) ounces. within 18 months us dollars are going to be better used to heat the freezing houses of next winter than for buying anything. precious metal bullion coins are going to be the only way to buy anything. let’s just make one point clear: the gestapo won’t work for chickenfeed and when the money they get paid doesn’t cover the food bill nobody’s gonna be trying to enforce government rules against holding real, sound money.

    i’m stacking up silver as fast as i can, i personally see silver rising in value extremely quickly in the next 12 months. and the other thing that one should be stocking up on is food… when bakers can’t buy flour, and mills can’t buy grain, because of the ridiculous nominal prices and their use of the vastly debased fiat currencies, it’s gonna take a little while, maybe a few months at the least, for everyone to say to the government ‘uh, no, we are not going to comply with your legal tender laws’ and the only sources of supplies will be black market, which is of course a very dicey business but many people will have to do it.

  2. The people behind introducing this to the US are talking of gold being an alternative or parallel currency within five years.

    Without a gold standard I don’t think it will represent much of an alternative. Almost nobody will use it.

    I don’t personally think there is much point trying to make gold a mainstream medium of exchange. It isn’t well suited to that function. Paper (or plastic) notes, be they promissory notes or even fiat notes fit in a wallet much more conveniently and are lighter to carry. Where I would like to see gold play a bigger role is not as a medium of exchange but as a unit of account. It is as a unit of account (and also as a means of final settlement between banks and governments) that historically gold has had a lot to offer.

  3. I have to admit to a certain scepticism myself on this issue.

    From the alternative perspective I feel it will best be used how it is now, a store of value in uncertain times. If I am concerned about the future of the Aussie $ it is a much simpler decision to invest in gold or other precious metals, than whether to buy Euros, Italian Lira, Spanish Pesos, … 🙂

  4. If we’d had a ‘Discussion’ column, I could have mentioned the piece in last Friday’s ‘Australian’, about how ordinary Vietnamese prefer to trade in gold or silver, and not use the official currency. However, as we don’t have a ‘Discussion’ column, i can’t bring it to mind.
    Sorry about that.

  5. You are forgiven.

    I could have discussed how gold is used in India but I suppose it will never happen now. 😦

  6. I understand why gold may be a better bet than paper money, but why is it the be all and end all? It’s historically been considered valuable by many cultures, presumably just because it looks good.

    It has some limited uses in electrical wiring etc, but you can’t really use it for much apart from wearing it as jewellery.

    If it’s just about having a pretty, durable, naturally occurring and relatively scarce thing as the yardstick for world currency, why not diamonds, various sorts of gemstones, cowrie shells etc? Diamonds in particular are scarce and much lighter per unit of value than gold. It would make engagement/marriage much more of a monetary transaction too 😉

  7. That is really a shame Nuke. If only we had a discussion column, you could have posted a link to the item you are talking about which would have allowed us to check it out. 😕

    Perhaps, as it seems to be about people preferring to use gold and silver to the official currency, it is not sufficiently off thread as to prevent you from bringing it up here. I am usually pretty strict but I am prepared to make an exception in your case. 🙂

  8. Papa- the fact that gold is chemically inert is a powerful reason to like it! You can leave it out in the rain without worrying about rust. Also, the yellow colour can be imagined as linked to the Sun, with silver being a kind of moon-metal.

  9. This is great news but its too bad it didn’t happen many years ago. We want to have this with silver and platinum also. Only when we have a lot of this gear out in the publics hands can we expect better monetary policy, and therefore better economic development.

  10. “I understand why gold may be a better bet than paper money, but why is it the be all and end all?”

    The point with gold and silver is that, since the government and banking systems are both unbelievable rackets, should they abuse the public too much, you can reduce their exploitation, by taking your gold and silver and going home.

    Now it would be nice if this abuse did not happen, was not legal, and was never tolerated. But in practice we can have gold and silver to limit the abuse, if we are too stupid to ban the abuse outright.

    Supposing gold, silver, copper and platinum were the only legal tender? Then suppose the government and banks were involving themselves in a war that many in the public did not like? A campaign to withdraw the legal tender from the banks could succeed in curtailing over-weening militaristic ambitions.

    This is the real magic of gold and silver. Yes it is true that it would be better economically if there were more than just these two traditional monetary commodities. But gold and silver are magic, because once the public becomes aware that they are being horribly milked, all they have to do is take their bat and ball (their gold and silver) and go home.

    This is why gold and silver will always be associated with liberty.

  11. I keep saying that the LDP, Australia’s broad libertarian party, should also call itself the Gold Party!

  12. Yeah I reckon you are right. A few changes around the edges and it would be the gold standard party in terms of policy development. But in practice it would be better not to rely on just one commodity for the entirety of the money supply. Because this would mean pumping the price up so high that golds value would have to fall over time. And it would mean too many resources going into gold mining.

    I think you set up conditions such that private money takes up a little bit more market share every year. There is no dead-weight loss in this (as is commonly assumed) since the recovery of monetary commodities, simply underwrites the recovery of base metals, and other resources. But this could not be argued, if we were bent on a mono-metallic system.

    Plus a gold-only setup lends itself to manipulation by elites. Legal tender and modern banking lends itself to manipulation as well. But so would over-reliance on just one metal.

    But putting all this carping aside it would be something if the party was associated with gold coins, silver bars, platinum bricks, copper stockpiles, rare earth metal hoards. I would see this as good branding.

    Look at the Chinese. Wrapping up all the rare earth metals. Incredible. It reminds me of during the American Civil War. The British Empire at that stage basically had a global near-monopoly on saltpeter. They could have easily determined how that war was going to end, though this is not generally understood. But here we are getting more and more vulnerable vis a vis the Chinese. A libertarian party must avoid letting libertarian arguments snooker it into giving away strategic ground.

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