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Introduction
Gold has been an important part of India’s rich heritage and culture for ages. Today, it is crucial to ensure the purity of the gold we purchase. The introduction of hallmarking happened to combat scams and frauds regarding the sale of gold. It certifies the authenticity and quality guarantee of the gold.
As consumers, it is important to understand hallmarking to make informed decisions and safeguard your interests while purchasing gold jewellery or making a gold investment. This is why India categorises gold into distinct standards based on purity, a process known as the hallmarking of gold. Let’s understand all about the hallmarking of gold and how it works.
What makes gold so valuable
Gold’s popularity as an investment option is largely due to its high value, as reflected in the high gold prices.
The high gold prices are attributable to the high gold demand which exceeds its supply in India.
A BIS report mentions that in recent years, the annual demand for gold has swelled to 600 - 800 tonnes.
Given the elevated gold prices, it’s paramount that as a customer, you get the right quantity and pure quality of gold that you actually pay for.
As per Melorra, our nation has over 4.5 lakh goldsmiths and 1 lakh jewellers, the sheer scale of which mandates a Government-prescribed legally valid, official standard to ascertain, test and certify the gold purity as an absolute assurance to customers.
Besides consumer protection, hallmarking also enables RBI to track gold items available and in circulation within the nation.
Different Gold Standards & Its Composition
Since gold is a soft metal, it needs to be mixed with other cheaper alloys in order to be used for jewellery-making purposes.
The alloying factor makes gold jewellery exposed to adulteration risk.
Adulteration in gold can only be detected by technical tests, leaving the customer vulnerable to possible cheating by certain unethical gold sellers. These circumstances led to the introduction of mandatory hallmarking standards by the Govt of India and quality control of gold jewellery.
The hallmark on gold jewellery will be reflected as 22K916, 18K750, 14K585 etc., which means the following:
24KT gold which contains 99.99% of pure gold is the purest form of gold.
What is hallmarking
Bureau of Indian Standards (BIS) defines hallmarking as ‘’the accurate determination and official recording of the proportionate content of precious metal in the jewellery/artefacts or bullion/coins.’’
The procedure of hallmarking in India is controlled, overseen and conducted by the BIS to maintain legal standards of gold purity. BIS’s symbols on gold include the following as depicted in the diagram below:
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Hallmarking on gold items is completed after a laser engraving is done to label the jewellery post assaying as a mark of approval of its purity.
Meaning of Hallmarking Symbols
Upon completion of the testing, a unique six-digit alphanumerical code is generated from the BIS server for each jewellery piece and is laser marked by the authorized hallmarking centre on the jewellery along with the BIS logo and purity mark, as below:
Hallmark symbols and their meaning:
- BIS Standard Logo: A triangle-shaped mark that confirms that the gold purity has been verified in a BIS licenced lab. This sign is commonly visible on every hallmarked gold items.
- Purity Mark: This sign certifies the quantity of gold purity in an item by way of:
- Caratage indicated by Karat (KT or K) i.e. 22K, 18K etc
- Fineness metric: This quantifies the gold purity in parts per thousand i.e. the pure gold constituent in comparison to the whole gold alloy.
For example, a gold object of 22karat purity would have a fineness of 916 (91.6%) and would be marked as 22K916.
3. Six-digit alphanumeric code: The Hallmark Unique Identification (HUID) number is embossed in the gold product and is distinct for each and every jewellery piece. Customers can verify this code on the BIS Care App to verify the jewellery code and confirm the purity level. Currently, it is not mandatory to mention the six-digit HUID code on the bill.
Recent development: BIS has notified recently that going forward jewellers in India are permitted to sell only hallmarked gold jewellery, irrespective of its purity or caratage.
What Falls Under the Scope of Hallmarking?
Six caratage levels allowed gold hallmarking: 14KT, 18KT, 20KT, 22KT, 23KT, and 24KT. All jewellery, with certain exceptions, requires hallmarking since Jan 2021.
- Caratage: Hallmarking covers 14, 18 and 22 carats gold jewellery from June 2021.
- Extension: The Indian Standard on Gold Hallmarking IS 1417:2016 has been expanded to include 20 carats, 23 carats and 24 carats.
- Bullion: Towards hallmarking of gold bullion and coins made up of fineness 995 and 999 parts per thousand, every refinery or mint needs to obtain a license and apply the hallmark symbol during the manufacturing process. As of Dec 2021, 44 refineries have obtained gold refining licenses from BIS.
Exceptions to the hallmarking requirement: The jeweller needs to mention a description of such jewellery as well the non-hallmarked aspect in the invoice.
- Gold articles with a weight of less than 2 gms such as finger rings
- Gold objects meant for export and re-import are exempt
- Gold article meant to be deployed for industrial, medical or scientific purposes
- Gold thread
- Incomplete manufactured item
- Jewellery falling into categories like Kundan, Polki or jadaau
- Jewellers earning an annual turnover of up to INR 40 lakhs per annum
- Gold watches or fountain pens
How to Check the Indian Gold Hallmark Online?
Since April 2023, all gold ornaments and objects are required to be marked with the 6-digit HUID number.
Customers can easily trace the HUID number to verify the genuineness and authenticity of the gold product.
These steps were taken to standardise the Indian gold market and for people to make informed decisions before investing in gold.
Follow the below steps to authenticate the purity of your gold purchase:
- Download the BIS Care App on your smartphone.
- Click on ‘verify HUID.’
- Type the 6-digit HUID number mentioned on the jewellery in the box.
- Click on ‘search’.
- You will receive detailed information about the jewellery, such as:
- The jeweller who got the jewellery hallmarked,
- Jeweller Registration Number,
- Assaying and Hallmarking (AHC) Centre,
- Article type, for example, earrings, necklaces, etc.
- Date of Hallmark
- Type of Jewellery
Essential Tips to Consider When Purchasing Gold Jewelry
- Understanding the purity
- Compare the price
- Check for the colour
- Measure the weight
Advantages of Buying Hallmarked Jewellery
The hallmarking process of accurately determining the exact percent of gold content would ensure the gold article is not fake, imitation jewellery.
As the saying goes, ‘God is in the details’, the gold prices vary according to the fineness of the quality or purity level of gold.
Most jewellery is made of 22KT or 18KT gold, while digital gold sold via Jar App and sovereign gold bonds issued by RBI are made of gold-standard 24KT gold. Therefore, it's crucial to carefully review the details beforehand.
- Realise higher value: The higher the caratage and the purity, the higher the quoted gold prices. Thus, each gm of 24KT gold is more expensive in comparison to 22KT or 18KT gold, owing to the higher gold component in %.
- Avoid KDM: Hallmarking guarantees that an ornament is not KDM jewellery, which uses cadmium, a gold alloy, for soldering. Incidentally, BIS has banned KDM gold owing to its health hazards.
- Transparency: Hallmarking of gold enhances the credibility factor and also reinforces customer confidence to buy gold.
- Convenience: Selling or recycling hallmarking gold is convenient and prompt. Given the guaranteed purity, the customer can directly sell the gold item at the current market price, eliminating the need for purity testing or gold melting.
Conclusion
The Jar App offers the highest purity gold category, certified 24KT gold, which contains 99.99% pure gold.
The best part is that the 24KT hallmarked digital gold sold via the Jar App channelises the small change in routine transactions towards fractional gold ownership.
This approach enables investors to invest in digital gold with ease and affordability. This arrangement benefits all gold investors equally.
