Gold purchase on Diwali: What is gold hallmarking? Know why it is crucial and charges to get it done

Gold purchase on Dhanteras: Buying gold during the Diwali festival holds great sentimental and religious significance in India. Gold is widely utilized in creating jewelry pieces and as a valuable asset. Nevertheless, there is a prevalent issue of many vendors selling gold items with impurities, particularly in rural areas where awareness levels are lower. In order to enhance consumer trust, the Bureau of Indian Standards (BIS) has introduced the practice of hallmarking for gold products.

The mandatory hallmarking of gold jewellery and artifacts, enforced in June 2021 with the introduction of Hallmarking Unique ID (HUID), guarantees the authenticity of gold available in the market. Hallmarking serves to authenticate the genuineness and purity of gold products. It is advisable to only purchase hallmarked gold items such as jewellery, coins, and bars from the market to safeguard oneself from being misled.

Starting on July 1, 2023, the Centre mandated that all gold jewelry and antiques sold in the market must be stamped with a six-digit mark. The goals of this hallmarking initiative are to safeguard consumers from fraudulent practices related to the purity of gold and silver, to position India as a major hub in the global gold market, and to enhance export competitiveness. The hallmarking will be valid for the entire lifespan of the jewellery post-stamping.

Hallmarking in India

When looking to purchase gold jewellery in India, it is important to ensure that it is hallmarked by the National Standards Body of India under the BIS Act. There are four key components to check before making a purchase:

BIS hallmark: This indicates that the purity of the piece has been verified in a licensed laboratory operated by the Bureau of Indian Standards.

Purity in carat and fineness: Look for markings such as 22K916 (91.6% purity), 18K750 (75% purity), or 14K585 (58.5% purity) to determine the level of purity in the jewellery.

Assaying & hallmarking centre's mark: Each piece should bear the mark of the assaying and hallmarking centre where it was certified.

Jeweller's unique identification mark: Make sure to check for the jeweller's unique identification mark on the piece.

These components serve as essential indicators of the quality and authenticity of gold jewellery in India, ensuring a safe and reliable purchase.

Charges for hallmarking

Gold article hallmarking charges: Rs. 45/- per article
Silver article hallmarking charges: Rs. 35/- per article

Minimum charges for a consignment:
Gold articles: Rs. 200/- (Services Tax and other levies additional)
Silver articles: Rs. 150.00 (Services Tax and other levies additional)

Definitions:
Consignment: collection of articles/artifacts of same fineness from which a sample is drawn and assayed.
Lot: set of articles with the same fineness, type/design.

Please note that hallmark charges do not include making charges and wastage charges. Charges are per article regardless of its weight.

How hallmarking is done

Quality Guarantee: Hallmarked gold or silver is stamped with a tiny mark that indicates the exact purity of the metal. For example, a hallmark reading "22K" signifies that 22 out of 24 parts of the metal are gold.

Prevention of Fraud: Previously, consumers had to rely on the word of the jeweler regarding the purity of gold or silver. This could result in dishonest practices. Hallmarking addresses this issue by clearly displaying the purity level on the item itself.

Gradual Implementation: The Bureau of Indian Standards (BIS) is progressively enforcing hallmarking nationwide to ensure sufficient testing facilities are available for accurate assessment. The ultimate objective is to mandate hallmarking in all 766 districts of India.

Unique ID: The hallmark on each piece of gold or silver jewelry includes a distinct six-character alphanumeric code, serving as a unique identifier. This code functions as a fingerprint for the item, aiding in tracking and enhancing security measures.