Tesco is taking on the pawnbrokers after launching a gold-buying service that lets shoppers raise cash by selling their family jewellery.

The service, run in association with pawnbroker Ramsdens, is currently being trialled online and in more than a dozen stores across the supermarket’s estate.

Tesco will pay £7.81 per gram of nine-carat gold – a price it claims is more generous that at the UK’s leading pawnbrokers and jewellers. Punters can post their gold to Tesco in special delivery envelopes, which are insured for up to £500, or hand in items at participating stores.

“Customers have been poorly served in this area so we’re pleased that we can trial a trustworthy service that is transparent and offers market-leading value,” the supermarket said.

“Plenty of people have old jewellery in the back of a drawer that is never worn and of no great sentimental value. It can be surprisingly valuable, particularly at a time when the price of gold is so strong.”