Gold Vending Machine Owner Reports Progress From Florida Installation

March 2, 2011
Gold Vending Machine Owner Reports Progress From Florida Installation

PMX Gold, LLC, a wholly-owned subsidiary of PMX Communities, Inc. has completed Phase 1 test marketing of the first US operated Gold Bullion Vending Machine at the Town Center Mall in Boca Raton, Fla.

The company reported that nearly 650 gold transactions have been made to date, in sizes ranging from 2 grams, 5 grams, 10 grams and 1 ounce gold bullion bars, and 0.5 ounce and 1 ounce American Eagle Gold Coins. Approximately 30 percent of these items were investment class (10 grams to 1 ounce). Detailed sales figures will be released upon completion of the company's annual audit and Form 10 –K filing with the SEC.

"Given the fact that the machine has only been operational in a ‘cash only' mode, together with a number of other significant technology and operational challenges we faced, we are pleased with the results," said Michael Hiler, the company's president and CEO in a prepared statement. "Offering instant access to 0.999 Pure Credit Suisse Gold Bullion Bars and U.S. minted American Eagle Gold Coins through gold vending machines is an important first step towards fulfilling our business plan. However, our perspective and goal concerning these tests is more of a macro view as to positive acceptance of access to unmanned gold bullion terminals by the public rather than simply to determine the feasibility of selling gold bullion from a vending machine."

Earlier this week JP Morgan announced that it will accept physical gold bullion as collateral and allow institutional firms and banks to borrow money against gold deposits. JP Morgan will not accept ETF trust gold as collateral, thus clarifying the significance of physical gold holdings. This announcement follows CME Clearing Group's decision to accept gold as collateral for trades on the exchange, and that gold bullion can be used for margins for CME trades ranging from crude oil, gold, grains, equity indexes and Treasury bonds.

"While we intend to have simple gold bullion vending as part of our business plan, PMXO is in the process of developing the infrastructure, technology and relationships for an exclusive PMX Gold Bullion Financial Management Account," continued Hiler. "We intend to capitalize on the potential emergence of gold as a parallel currency and offer our retail customers the ability to conduct Gold Bullion based transactions through this account via unmanned terminals combining both gold vending machine and conventional ATM technology. We are reviewing the acquisition of certain intellectual property rights and intend to release initial details of our nationwide expansion plans over the next few weeks."