Tesco have devised a new way of helping its customers to beat the New Year’s VAT rise.
The supermarket giant has launched its own gold exchange service so customers can sell their unwanted jewellery and medals to before they start the weekly shop.
Gold prices have grown rapidly during the global credit crisis with prices soaring from $600 an ounce in 2007 to $1, 400 in 2010. This spike in value has lead customers to gold exchanges and pawn brokers in their thousands over the last few years each one hoping to make some quick cash.
Unfortunately the practice of buying gold is at times less than reputable, with some in the business under investigation by the Office of Fair Trading. Which? also released reports claiming that the firm CashMyGold paid £38.57 for an item worth £700.
Tesco bosses have expressed their commitment to providing a responsible and trustworthy service for its customers. It is certainly bucking the trend of offering the minimum amount possible for piece, buying at £7.81 a gram for 9 carat gold.
This is a much higher rate than market competitors. H & T is the country’s largest pawn broker and they pay £6.50 a gram. The company postgoldforcash are amongst those with the lowest prices paying as little as £3.27 for the same amount.
Diversification has been high on Tesco’s agenda in recent years as the grocer’s portfolio has grown to include insurance, a mobile phone network and, coming soon, the Tesco Mortgage.