Chinese cash in jewellery at automated gold recyclers as prices soar

Shanghai: Dozens of people crowded around an automatedgoldrecycling machine at a Shanghai mall, hoping to melt down family heirlooms for cash as price...

Shanghai: Dozens of people crowded around an automated gold recycling machine at a Shanghai mall, hoping to melt down family heirlooms for cash as prices of the precious metal hit record highs.

China is the world's largest consumer of gold, which is traditionally purchased by families to mark special occasions like births and weddings.

But as prices soared to a fresh high near $5,600 on Thursday, customers surrounding the bright yellow machine installed by gold trading firm Kinghood Group were looking to sell.

"I never thought prices would rise so dramatically," said 54-year-old Wu, who told AFP she wanted to sell panda-themed gold coins she had purchased after the birth of her daughter in 2002.

She said she had previously sold the machine a ring inherited from her late father, which fetched around 10,000 yuan ($1,400) -- a huge increase from the original 1,000 yuan her mother had paid for the ring decades ago.