Thursday, January 20, 2011

Japan Gets Gold and Silver Vending Machines

Wow! Finally Japan is getting our gold & silver vending machines!


Japan Times reports:



The machine offered 1 gram of gold for ¥6,800, or $82.30, according to the price Monday. Gold traded at $1,362.45 per troy ounce just before 11 a.m. in Tokyo, or about $44 a gram. The vending machine sells the precious metal in the form of coins and ingots, with weights ranging from 1 gram to a little more than 7 grams.
Japan has a vending machine for every 32 people, according to Bloomberg calculations. The nation posted ¥5.1 trillion in vending machine sales in 2009, about 45 percent more than the $42.9 billion revenue in the U.S., according to the Japan Vending Machine Manufacturers Association.
Cool! Vending machines that sell precious metals! Wow! I want to buy one!.... How much are they? The article continues:
The most expensive item available in Rokugawa's machine was a 7.2-gram gold coin issued by the Canadian central bank, retailing for about $410. Rokugawa declined to say how much gold will be kept in the machine at any one time.
What!? $410 USD dollars for a 7.2 gram coin!? $410 dollars is ¥33,728... I can go to just about any gold shop in Okachimachi and buy a 10 gram gold coin for ¥13,992 ($170 USD!). No one is going to be stupid enough to pay those prices!

Gold Vending Machine. 
(Girl not included).
This vending machine has a 290% mark up over spot price? Are you kidding me? Rip off!!!!
No, thanks. I think I'll just ride the train 4 stops (ten minutes) for ¥160 ($1.94) from Tokyo Station to Okachimachi. I'll save money, get some exercise and be able to buy almost three times as much gold for the same price...


I enjoyed the headline of this article. It says:



Investors need 'something real they can touch'




I think any "investor" who pays this massive markup to buy gold deserves not to be called "investor" and deserves to lose their money!

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