Gold price rally helps drive surge in profits for Ramsdens

Higher gold prices have helped drive a 50% surge in precious metal profits for high street lender and retailer Ramsdens, which said it is raising its outlook for the year.

Gold prices have been soaring as investors pile cash into the so-called “safe haven” asset amid wider turmoil in the financial markets.

The precious metal reached a new all-time high last week, prior to US President Donald Trump announcing new tariffs on all of the country’s imports.

While coming down slightly since the beginning of the month, prices remain elevated.

Ramsdens said this, coupled with a 5% increase in the weight of gold purchased by buyers, has driven a 50% 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% 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% 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 analysts previously forecast.

Chief executive Peter Kenyon said: “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.

“We look forward to building on this positive performance throughout the second half of the financial year.”