Jewellers worried over hallmarking rules

TIL Desk/Business/New Delhi/ Reports of compulsory hallmarking of gold jewellery after the government notified the revised Bureau of Indian Standards (BIS) Act last week have sent ripples across the jewellery industry. Many big players have started claiming they sell only hallmarked jewellery.

However, those selling non-hallmarked jewellery are prioritising sale of such jewellery and others are considering various options, including self-certification, till all jewellery is hallmarked.

According a report released two years ago by the World Gold Council, “Only 30 per cent of Indian gold jewellery is currently hallmarked. There are widespread differences in purity and an average under-caratage of anywhere between 10 per cent and 15 per cent.”

Making hallmarking of gold jewellery compulsory has a big impact from the gold demand perspective as old jewellery will have to be converted to new compliant jewellery and its caratage will also have to be 14, 18 or 22, as mandated by the BIS Act, once it is implemented.