Tesco offering customers cash for old gold

Supermarket giant Tesco hopes to cash in on the rising price of gold with the launch of a service allowing customers to swap 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.

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."