Daily Israel Report

Israeli Kiosks Offer Cash for Gold

A new “Gold to Cash” chain is setting up kiosks in shopping malls, offering cash on the spot for gold, now worth nearly $1,900 an ounce.
By Tzvi Ben Gedalyahu
First Publish: 9/11/2011, 10:35 AM

A new “Gold to Cash” chain is setting up kiosks in shopping malls, offering cash on the spot for gold, which now is worth nearly $1,900 an ounce. After crossing the record threshold last week, the price settled back to $1,861.20 on Friday.

Operators of the new venture plan to open their first kiosks by the end of this month in malls in Petach Tikvah in metropolitan Tel Aviv, Ashdod, Hadera, Haifa and in Diszengoff Center in Tel Aviv.

Fifteen other shops are scheduled to open by the end of December.

With gold soaring to record prices almost every week, the chain owners expect sales worth millions of shekels to Israelis wanting to take advantage of the current price and forfeit their gold jewelry for quick cash.

Analysts are split on the future of the price of gold – some say the current levels are a bubble, and others predict gold will double or even triple in price.

The kiosk owners say that anyone wanting to sell gold can do so quickly following an on-the-spot examination of the gold. A price will be offered, followed by a second examination of the gold.