TESCO Buying Gold! omg they are tin foil hatters too!

lvader

Are they keeping the gold or simply selling it on for a tidy profit?, I'm guessing the later.

Bangerchick

I imagine that they'll be shifting it on pretty quick, so they have minimal exposure to the market if it drops. In fact, I wouldn't be surprised if that exposure is entirely covered by a 3rd party, with Tesco just acting as a middle man and creaming of some of the money.

vivatifosi

lvader wrote: »

Are they keeping the gold or simply selling it on for a tidy profit?, I'm guessing the later.

I'd lay money on it being the latter. They are partnering with a gold trader and offering £7.81 per gram on the website today.

amcluesent

Tesco corporate treasury likely sees the Euro going phut, £ unsteady and $ collapsing and wants to have a bullion position. Don't forget TEsco want to go large in China, so maybe they think a gold war chest will last better than fiat paper?

Graham_Devon

lvader wrote: »

Are they keeping the gold or simply selling it on for a tidy profit?, I'm guessing the later.

It's most likely they are affiliated with a company, and are simply a middle man.

It's how they run a couple of other sections of their business. For instance, their Tyre section, which simply works alongside Black Circles, and simply passes the business onto black cirlces and take a slice of the profit.

Their DVD rental service is lovefilm.

Their MP3 download service is run by someone else too.

Tesco Mobile is all run by another mobile companies network (3 I think?)

Using the Tesco name, and massive customer base simply creates sales which they can take a slice of the profit on. It's easy, no overheads and they can simply drop it without any effect on their business as soon as they want to.

purch

Are they giving Clubcard Points ??

Graham_Devon

purch wrote: »

Are they giving Clubcard Points ??

Yup, one per pound value!

vivatifosi

purch wrote: »

Are they giving Clubcard Points ??

Yes:rotfl:......................

wymondham

I'd only be interested if the van drivers delivering our home shopping bring scales with them and a pdq machine!!

A._Badger

I was browsing around an antique shop recently and overheard the proprietor discussing his stock of jewelery with someone I'd assumed was a customer, but may have been a friend or, even a competitor.

The converstain ran something like:

"How long are you hanging on to pieces like this necklace, these days?"

"Oh, not much more than three or four weeks. If they don't sell by then they go for scrap."

It occurred to me that at this rate, quite a lot of history is going to wind-up as the plating on HDMI plugs.