When we wrote our Tesco Gold Exchange review (back in November), we speculated what a customer would be paid for Asian 21ct gold jewellery.

Well, it appears our suspicion was correct. We’ve just had confirmation from a customer who sent their 21ct wedding jewellery to Tesco’s for valuation and were offered a sum based on their 18ct rates.

Based on today’s prices, a customer sending 21ct gold to Tesco would be paid just 65.2% of its true value.

That’s a very poor deal!

Supermarket chain Tesco have entered the ‘cash for gold’ market with the launch of a new web site, Tesco Gold Exchange (tescogoldexchange.com).

Tesco Gold Exchange is being operated for Tesco’s by Ramsdens, an online cash for gold operation and chain of high street Pawn Brokers.

Looking at the prices being quoted on their gold calculator, it appears they are paying roughly 70% of market value for scrap gold. This is a lot higher than many TV advertising companies, but still falls way short of the rates paid by specialist gold buyers, such as Gold-Traders.

It’s interesting that when using their calculator, they highlight the poor prices offered by some of their competitors, like postgoldforcash.com (WHSmith).

It appears Tesco Gold Exchange only recognise 9, 14, 18 and 22ct carat gold when making valuations. I’m not sure what would happen if you sent them some Asian 21ct gold – at a guess, it would probably be valued at the 18ct rate.

Undoubtedly, Tesco Gold Exchange will prove profitable for Tesco. However, for the savvy customer who does their research, there are far better places to sell your gold for cash.