SuperMarket Chain Exchanges Gold For Groceries

For those worried about food price inflation, we bring you the news that some supermarkets might be making contingencies (already).

Specifically, this is the story of Tesco, which according to the Telegraph quietly entered the Cash for Gold market last year with the launch of its ‘Tesco gold exchange’.

So, when the household cash runs out, fear not! Soon enough you too will be able to swap your family jewelery for a loaf of Hovis or some fresh eggs.

Well, it’s not quite like that. You have to send your jewelery off to Tesco first who will then credit your account accordingly. But still. You get the idea.

Mark O’Byrne, director at bullion dealer Goldcore told us what the phenomenon actually shows is that, contrary to popular belief, the public are still gold sellers at large, not gold buyers. Tesco, it would seem, is simply tapping into the opportunity.

Or as he explained directly:

The “Tesco Gold Exchange” story shows that the international ‘cash for gold’ phenomenon continues and that the man and woman in the street continue to be sellers of gold (specifically gold jewellery) rather than buyers of gold.

From a contrarian perspective this would suggest that gold’s bull market will continue. If Tesco starts selling gold coins and bars to the public (as one Harrods shop and a handful of gold ATMs internationally are now doing) then it will be time to sell gold or reduce allocations to gold.

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