A large amount of the gold we purchase does not have the same percentage of the promised amount. And this is because the majority of people do not know how to check this factor.
Indians have fallen victim to this kind of experience because they are the second country with the highest gold consumption level.
Why this is most likely to happen is because the metal has a lack of proper certification.
However, this situation is likely to turn around fast as the government ensures that gold jewelry and other artifacts have hallmarks starting from the beginning of the year.
According to the Minister of State For Consumer Affairs, Raosaheb Danve, there will soon be a government notification regarding hallmarking of gold jewelry and other artifacts starting from 15th January 2020.
In the majority of the countries, hallmarking of gold jewelry is mandatory. The Managing Director of India in the World Gold Council, Somasundaram, also mentioned that most consumers invest a lot in gold and others usually take loans in gold form.
So, if there’s no guarantee on the commodity, purchasing gold does not work in the consumer’s interest.
Gold jewelry hallmarking was brought into India by an accrediting agency in charge of Assaying and Hallmarking Centers, the Bureau of Indian Standards (BIS), April 2000.
But presently, hallmarking is a voluntary duty in India. The National President of the Indian Bullion and Jewellers Association stated that only 30,000 out of the over 300,000 jewelry sellers in India sell hallmark jewelry.
In light of gold purity, lack of hallmarks reveals the deficiency of gold purity. According to Senior Vice-President of Retail and Marketing, Sandeep Kulhalli, a few quantities of impurities are now being rendered to consumers – which is the right thing.
What is Hallmarking?
Jewelers need to obtain a license from BIS before hallmarking their jewelry or artifact. Jewelers can get their jewelry licensed at any of the BIS Assaying and Hallmarking Centers.
On the 31st of October 2019, there were about 877 Assaying and Hallmarking Centers known to BIS.
Hallmarking involves a sampling method whereby some jewelry pieces are sparsely picked for testing. Gold’s purity is measured in caratage. 24 carat is the purest form of gold, but it is too soft, making it impossible for jewelry building.
Jewel hallmarking comes in either 14, 18, and 22 carats that are great for making jewels. 14k has 58.5 percent purity, 18k for 75 percent purity, while 22k for 19.6 percent purity.
What determines the cost of the jewelry you buy is the hallmark cottage and the current gold price. So, a 10gm of 24-carat gold will be worth the difference from 22 carats, the same for 14 carats.
According to Kothari, jewelry without hallmarks jewelry will be given a timeframe of one year to remove their present goods, and representations have been assigned to implement the hallmark rule in the metro cities than other cities in India.
Also, the emergence of hallmarking causes jewelers who have gold that doesn’t meet up with the standard to melt their gold.
Change in Price
The result of hallmarking may also lead to an increase in jewelry prices. This is because the price of hallmarking is presently at 35 dollars per piece.
Hallmarking is a very relevant part of any jewelry organization. It also helps to curtail the spread of inferior gold jewelry that doesn’t meet up with the required level of purity. So, consumers can benefit from the gold market as hallmarking helps them purchase gold with few impurities.