Now Tesco cashes in on soaring price of gold by taking on the pawnbrokers
It will already sell you everything from bread and milk to a sofa or an iPhone.
And now Tesco will give you cash for your old gold too.
In its latest diversification, it emerged yesterday that the retail giant is taking on the increasing number of pawnbrokers.
Retail giant Tesco launched their Gold Exchange in November and it is currently being trialled online and in at least 15 stores
It is hoping to cash in on the soaring price of gold, which has more than doubled since 2007.
Tesco’s Gold Exchange – launched without fanfare in November – is being trialled online and in at least 15 stores and promises to turn unworn jewellery into money.
The launch comes despite accusations that consumers have been ripped off by the cash-for-gold market.
Despite the fears, the gold trade has boomed during the recession, with unwanted watches, chains and necklaces being sold for scrap in growing numbers.
Gold Exchange promises to turn unworn jewellery into money and Tesco is now pledging to raise standards and prices in the cash-for-gold industry
Meanwhile, the number of pawnbrokers has gone up by 44 per cent since 2008.
Many people have been attracted by advertising on daytime television, fronted by celebrities including Dale Winton and Anne Diamond.
Tesco, which has such retail dominance that it takes more than £1 for every £7 spent on the high street, is now pledging to raise standards and prices in the cash-for-gold industry.
It offers customers a Gold Exchange pack sent through the post which they can either return by special delivery or by hand in store.
Dale Winton has appeared on adverts for rival pawnbroker Cash My Gold
The contents of the returned packet, which is insured up to £500, is valued and an estimate sent to the customer via letter or email.
If they wish to go ahead, payments are made directly into their bank account.
Tesco is offering £7.81 per gram of nine carat gold, with acceptable items including earrings, bracelets, chains, necklaces, bangles, rings and lockets.
The supermarket says its price compares with the £6.50 offered by pawnbroker chain H&T, £7.70 by jeweller H.Samuel and £3.27 by Postgoldforcash.
Tesco said: ‘Customers have been poorly served in this area so we’re pleased that we can trial a trustworthy service that is transparent and offers market-leading value.
‘Plenty of people have old jewellery in the back of a drawer that is never worn and of no great sentimental value, but can be surprisingly valuable, particularly at a time when the price of gold is so strong.’
The price of gold has soared to $1,400 (£900) an oz, compared with around $600 (£380) in 2007.
But as the number of customers prepared to trade in their valuables has risen so too have the complaints.
To date the Office of Fair Trading is investigating five companies that buy gold through the post for alleged breaches of consumer protection laws.
The Tesco service is being run by Ramsdens, the country’s largest family-owned pawnbroker, which also offers its own cash-for-gold postal service.
Ramsdens is not included in the OFT investigation.
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