Albemarle gold sales lose shine
A high street "gold rush" as households look to raise cash by selling jewellery has slowed sharply, a pawnbroker has revealed.Albemarle & Bond, which has around 169 stores and 38 gold-buying "pop-up" shops, said it was too early to determine whether the "marked slowdown" in its gold buying operation reflected recent wet weather or was part of a developing trend.
Growth in the value of gold bought by the company has slowed from over 50% in the first half of its financial year to mid single digits in the last eight weeks.
With the market price of gold falling, Albemarle said profits for the year will increase at a rate below current market forecasts. Shares fell 5%.
Reading-based Albemarle, which also trades as Herbert Brown, has posted higher profits for 20 years in a row, most recently a 5% rise to £21 million in the year to June 30.
It has benefited from increased demand in recent years as banks tighten their lending criteria. The business was founded in Bristol in 1983 and bought Leeds-based Herbert Brown in 2007.
It has benefited from increased demand in recent years as banks tighten their lending criteria. The business was founded in Bristol in 1983 and bought Leeds-based Herbert Brown in 2007.
© 2013 Press Association