Tuesday, May 18, 2010

Abu Dhabi Gold Vending Machine A Hit

According to a piece in The National of India, the now-famous gold vending machine in the Emirates Palace lobby sold out of gold in a day.
Four kinds of gold bars (in varying weights) and six kinds of coin were gone so fast that they had to restock before more tourists (and residents) besieged the machine. They had stumbled upon a trend that has been in place for thousands of years. In the West, gold is seen as an investment. In the East, it is much more. It helps you assert your status in society and usually translates into gold jewellery that adorns the necks, fingers and wrists of blushing brides. Especially in India.
[And they say gold has no intrinsic value.]
A few years ago, my mother bought her first gold bar – one given to her at a discount by her bank for being a loyal customer – and she was hooked. Every month, I get a rundown of the gold market from her. She has become an amateur investor in a commodity whose price has soared in the past few weeks, thanks to shaky European politics.

I hesitate to talk askance at the author's enthusiasm, but there are hints in his mother's behavior of something that cynical market players will pick up on.

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