Gold prices reached a new all-time high last week before U.S. President Donald Trump announced tariffs on all of the country’s imports.
The price of the precious metal has continued to soar as investors pile cash into the so-called “safe haven” asset amid wider turmoil in the financial markets.
High street lender and retailer Ramsdens says it is raising its outlook for the year after the higher prices helped drive a 50 per cent surge in precious metal profits.
While coming down slightly since the beginning of the month, prices remain elevated.
Ramsdens said this, coupled with a 5 per cent increase in the weight of gold purchased by buyers, has driven a 50 per cent increase in gross profit within its precious metal division over the first half of its financial year.
The retailer buys unwanted jewellery or gold from customers and then either sells it in stores or online or to a bullion dealer.
It has further capitalised on the service by launching a dedicated gold buying website last month.
Ramsdens, which has 169 stores in the UK, said jewellery profits jumped 15 per cent over the first half, compared with the same period a year ago.
Its pawnbroking service – where people can take out a loan against the value of a piece of jewellery or a watch – also enjoyed a 10 per cent increase in gross profits.
Ramsdens said it is raising its full-year profit expectations as a result of the stronger financial performance.
It now expects to report a pre-tax profit of £13 million for the 2025 financial year – up from the £11.4 million that analysts previously forecast.
“This positive trading momentum, together with the continued benefit to the group presented by the sustained high gold price, has led the board to increase profit expectations for the 2025 financial year,” chief executive Peter Kenyon said.
“We look forward to building on this positive performance throughout the second half of the financial year.”
