Thursday, January 6, 2011

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.
More Here..

8 comments:

  1. I do not know how many times I have seen ignorant people post here that "cannot buy food with gold". I guess they are now officially proven wrong by this story.

    Soon it might be cash they the stores refuse to take and insist on gold or silver instead.

    Barron's: US Will See Run on Treasurys, Hyperinflation
    Wednesday, 05 Jan 2011 10:44 AM
    By Greg Brown

    Investors in U.S. debt around the world are worryingly near a "psychological breaking point" that could force a "run on the bank" against Treasurys. .......

    If hyperinflation takes hold, expect gold to run quickly higher, Sperandeo writes. In hyperinflation, the metal can gain between 2,000 percent and 50,000 percent in value against a hyperinflated, collapsing currency.
    -----
    You can imagine what your dollar is worth if gold is 2,000% to 50,000% greater in value.
    Do you think you are going to get your money out of the bank before the investors in US Treasuries? --- I DOUBT IT.

    ReplyDelete
  2. 438
    got gold beeches
    gold beeches got it goldddddd
    weeeeeeeeee
    im rich beech

    ReplyDelete
  3. Yea bring your torch to the grocery store so you can melt the correct amount of gold for the bill.Give me a break gold does nothing but look pretty its just a piece of metal that shines.

    ReplyDelete
  4. let me be a man to say i was a skeptic. While ago I laughed at gold buyers. i said gold cant do anything like first post made fun of. I think I might be wrong then. i assumed it just shined in pocket, rich people set it on furnicher, guest say wow. Id like some of the apple pie please. anyone explain where to find gold and stuff like it. If anyone can tell me where the world holds gold and stuff id be happy for there help. What stores sell gold, online, anything. Thanks for help folks.

    - Sam

    ReplyDelete
  5. Buying old gold jewelry at 30-40% below spot for the grocer to later send it in for melt and for a big profit is hardly "exchanging gold for groceries". Better, to sell your gold first to a broker of volume who will give you close to spot, then buy your groceries. Payday lenders are doing the same thing, but it is about big profits, not recognizing gold as money.

    ReplyDelete
  6. Gold is money. Gold is just another currency presently circulating throughout the world.
    Gold has been in this state for the past 5000 years. In the history of the world not one PAPER currency has lasted longer than 100 years. They all have failed for the same reason. Printing.

    ReplyDelete
  7. 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.
    Cash Gold

    ReplyDelete
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    ReplyDelete

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