Tesco unveils cash-for-gold service
Supermarket giant Tesco hopes to mine new ground with the launch of a service allowing customers to swap unwanted gold jewellery for cash.
The retailer began trialling its Gold Exchange online and in about 15 stores in November.
Tesco said it developed the service, which is traditionally associated with pawnbrokers and specialists, in the wake of the strong price of gold.
Under the fledgling scheme, those over 18 can apply for a gold pack and send off their unwanted or damaged gold jewellery in a prepaid Royal Mail special delivery bag via their local Post Office or in participating Tesco Extra stores. The packet is insured up to £500.
Once the items have been valued, customers will receive an offer letter or email stating the proposed price for the gold items.
If they wish to go ahead, payments are made directly into the customer's bank account.
On its website, Tesco pledged to pay £7.81 per gram of nine carat gold, with acceptable items including: earrings, bracelets, chains, necklaces, bangles, rings and lockets.
A Tesco spokesman 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.
"Tesco Gold Exchange helps customers feel confident about raising a few extra pounds from their unwanted gold, enabling them to spend it on something more worthwhile.
"Plenty of people have old jewellery in the back of a drawer that is never worn and is of no great sentimental value but can be surprisingly valuable, particularly at a time when the price of gold is so strong."