Tesco goes digging for unwanted gold

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 trials of its Gold Exchange online and in about 15 of its British 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.

However, there are no plans at the moment to expand the walk-in service to Tesco’s stores in this country but a spokesman for the company’s Irish operations said the customer would be the main driver behind any decision to replicate the service here.

“It’s a new idea for Tesco and it’s very much in a trial period in the UK, so it will take a bit of time to see the reaction,” said communications manager, Seamus Banim. “We continue to innovate for the consumer and respond to their demands, so that would be a key motivator.”

Under the fledgling scheme, those aged 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 the customer accepts the offer, payment is made directly into their 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:

“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.”

Various gold exchange outlets have popped up across Ireland during the last year, indicating a demand for the service, but Irish customers cannot so far use Tesco’s online version as they must have a British bank account and use the special Royal Mail package, which is priced for delivery within Britain.