Britons proceed to money in jewelry as gold value soars, says pawnbroker Ramsdens

Pawnbroker Ramsdens has upped its annual profit forecast for the second time this year as customers continue to cash in jewellery amid surging gold prices. 

The chain, which operates 173 stores, said profits across its precious metals arm would be ahead of previous forecasts, reflecting both the high gold price and increased purchase volumes. 

The price of gold has proved volatile in recent months but remains over 60 per cent higher than this time last year at nearly $5,000 an ounce. 

Ramsdens said it continued to benefit from the ‘sustained, very high gold price compared to historic levels,’ and expects the price ‘could remain elevated throughout the second half of the year because of the geopolitical and economic climate. 

The pawnbroker expects its pre-tax profit for the year to September 2026 to be at least £24million and potentially as high as £28million, well above the previous analyst consensus of £21.1million. 

In demand: Pawnbroker and lender Ramsdens has upped its annual profit forecast for the second time this year amid surging gold prices

The upturn in gold prices is pushing up both margins and volumes in Ramsdens’ precious metals buying division, where the weight of gold purchased is also around 50 per cent ahead year-on-year. 

Ramsdens said its jewellery retail revenue was approximately 25 per cent ahead year-on-year. 

The group said its pawnbroking lending reached ‘record levels’ in February 2026, adding that ‘positive momentum’ had continued into March.

Its loan book is now approximately £13.5million, an 18 per cent rise on September’s year-end position of £11.4million.  

The group said trading across its currency exchange arm had been softer, with commissions around five per cent lower as customers shift towards online and prepaid card products, which carry thinner margins.

The firm said that while the situation in the Middle East ‘may have an impact for international travel’, its primary foreign currency activity was selling Euros to customers holidaying in Europe which currently appears to be stable. 

Tamsdens remains on track to open between eight and 12 new stores in the current financial year.

Chief executive Peter Kenyon said: ‘Ramsdens continues to perform well across its diversified business model reflecting the strength of our trusted brand, value for money proposition and outstanding team. 

‘In addition to underlying progress across the business, we continue to benefit from the high gold price, which is significantly boosting both customer demand and profits within our purchase of precious metals segment.’