The supermarket will trial its Gold Exchange service online and in about 15 stores, rivalling traditional pawnbrokers and postal gold services such as CashMyGold and Cash4Gold.
Gold Exchange will provide a prepaid and insured Royal Mail special delivery bag for customers over 18 to send away their unwanted or damaged gold jewellery in return for money.
Tesco pledges to pay £7.81 per gram of nine carat gold, with accepted items including: earrings, chains, necklaces, bangles, rings, bracelets and lockets, according to its website.
Once the customer agrees, the money can be paid direct into their bank account.
Clubcard points can also be earned on the Gold Exchange service.
Gold prices have more than doubled during the recession, with an ounce currently worth around £900.