Harsh Goenka impressed by Shanghai’s gold ATM, warns traditional lenders in India, netizens call it ‘a Chinese scam’

Chairman of RPG Group Harsh Goenka praised the concept of gold ATMs introduced in China's Shanghai, a non-traditional method where people can sell their gold instantly without the involvement of gold lenders.

In a post on X, Goenka highlighted how these ATMs work and wrote," Drop your jewellery, it checks purity, melts it, calculates value, and credits your account instantly."

Calling these ATMs transparent and free of exploitation, he further noted that this technology may become a threat to gold lenders in India.

“If this comes to India, traditional gold lenders might need a new business model. Transparency in. Exploitation out,” Goenka remarked.

Gold ATMs are automated kiosks that allow customers to purchase small gold bars, coins, or other gold-backed products, instantly.

Netizens react

Several social media users reacted to his post, most questioning the transparency of these ATMs and reflecting on why they will not work in India.

“If India were to allow it, no one would wear jewellery in the streets, and chain snatching would be at an alarmingly high rate! Unlike China, we don't have good law and order in our cities—sad but true!” on of the users commented.

Another user sad, “Very few will put their gold ornaments into a shredder without an initial quote. Gold loan or sale transactions need a personal touch. It won't work like this even if it appears highly efficient on paper.”

One of the users stated, “When a machine does this, we are convinced that it is transparent. Question is whether purity values and weight after melting is being measured correctly! Another area which may be very relevant to our country is a machine which just takes the jewellery, checks its purity without melting it and disburses a loan equivalent to 80 percent of its value! That would be a resounding success here."

“Sounds like a Chinese scam,” added another.

“Indians are not willing to sell their Gold. They are happy with mortgaging it so that at a later date they can get it back. Hence traditional Gold loan models will continue to thrive,” another user said.

Gold ATMs in Shanghai

Gold ATMS were manufactured by Shenzhen-based Kinghood Group. They have been rolled out in nearly 100 cities across China and launched amid soaring gold prices, according to a report by Sixth Tone, a Chinese state-owned publication. These ATMs melt gold at 1,200 degrees Celsius, giving real-time purity checks, live pricing, and instant credit features, a possible alternative to traditional gold shops.