Gold Hallmarking And Its Effect On Gold Market Dynamics
Indian gold jewellery, especially South Indian Gold Jewellery, is quite popular all over the world. The exotic designs and jewellery styles offered by the popular brands in India continues to attract international customers in huge numbers. Yes, gold jewellery is a statement of fashion but more than that it is a good investment as the gold prices continue to appreciate year after year.
To make sure you are investing in the right pieces of jewellery it is important that you understand the purity of gold that you intend to purchase. This can be done by looking for hallmarks on the jewellery pieces.
Gold hallmarking allows you to understand the purity of gold used in a particular piece of gold jewellery. Besides, hallmarking also denotes the carats of gold in that particular article as well as the trademark of the manufacturer.
In India, the BIS or the Bureau of Indian Standards is the official agency for certifying precious metal including gold. Based on the specification standards set in India they can carry out evaluations. After completing it successfully they can certify and hallmark precious metals.
BIS Hallmarking To Be Mandatory From January 2021
An announcement has been recently made in India by the Consumer Affairs Minister Mr. Ram Vilas Paswan. Hallmarking of gold jewellery and articles made of gold will be mandatory in India beginning from January 15th, 2021. The notification will come out on the 15th of January this year.
Gold Hallmarking has not been compulsory in our country until now. Most of the gold jewellery stores in rural areas and smaller towns do not sell hallmarked jewellery. As a result, there have been several cases where the customers have had to face issues with the purity of the gold they’ve purchased.
The problems usually come up when they plan to sell gold jewellery or exchange them for new ones. Mandatory hallmarking will be the most beneficial to those people living in villages or smaller towns. They can be sure of the purity of the gold jewellery they wish to purchase.
How Hallmarking Will Affect The Gold Market Dynamics?
Hallmarking of Indian gold jewellery will be mandatory from the 15th of January 2020. However, the government has granted a period of one year to implement this decision totally. During this period:
- New hallmarking agencies will be set up by private entrepreneurs.
- These centers will be set up in places that have a higher demand for gold jewellery and artifacts.
- The gold retailers have to clear their existing stock that is not hallmarked.
- The process of registration by the jewelers has to be completed within a period of one year. (By January 15th, 2021).
The decision to make gold hallmarking compulsory beginning from next year will bring about changes in the current gold market dynamics.
- Jewellers will have to clear their entire stock that is not hallmarked within a year.
- They’ll have to sell it by offering major discounts or cut off the entire making charges involved.
- The discounts offered will have to be increased as the deadline approaches.
- On failing to sell non-hallmarked jewellery in time they’ll have to melt the jewellery and get it hallmarked.
- Big losses can be expected as they won’t get the making charges involved in the non-hallmarked jewellery.
Quality issues of gold jewellery can be tackled once the new ruling has been enforced. India occupies the second position in the world gold market. The new ruling would boost the demand for gold in India.
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