Au ATM: UK's first gold vending machine unveiled

Predictably it's gold coloured and it looks pretty flash. Britain's first vending machine selling gold made a surprise debut in the Westfield shopping centre in west London today, apparently to cater for growing retail demand.

The Gold To Go machine is manufactured by German operator Ex Oriente Lux, which is keen to tap into the traditional status of gold as a "safe haven" during economic turmoil. The company also thinks there is a market for buying last-minute presents such as wedding anniversary and landmark gifts, all in neat packaging.

A computer inside the machine updates the price of gold every 10 minutes to reflect fluctuations in the world market. It sells bars and coins in various sizes, including – currently – a special souvenir 2.5g bar with the London skyline engraved on its reverse. Shoppers can also pick up a 1g coin for about £40 or a 250g bar for £10,250.

But with the price of gold currently at $1,490 an ounce, experts warn that shoppers using the machine are paying over the odds for the convenience – typically up to 25% above the gold spot price. And that's before they've even taken a view on whether now is the right time to invest in the metal – it remains close to April's record high, leading to fears in some camps that it may be due a downward correction. Others believe it is unstoppable given the volatile state of global economies.

The world's first gold vending machine opened last year in Abu Dhabi's Emirates Palace Hotel, and there is another in Las Vegas.

Amid ongoing concerns about fraudsters targeting conventional ATMs, there are worries the gold machine could be a magnet for thieves. Would-be robbers will have to contend with reinforced steel and a state-of-the-art alarm system, while Westfield's CCTV cameras can also spot any wrong-doing.

Joe Dreixler of Ex Oriente Lux said: "It would cost you a great deal more to get the gold out than the value of the gold inside."

And anyone who decides to spend more than £2,500 will have to have their passport scanned to meet anti-money laundering rules.