Government to Make Hallmarking Mandatory for 9-Carat Gold Jewelry Amid Rising Demand
Move Aims to Ensure Purity and Protect Consumers as 9-Carat Gold Gains Popularity
New Delhi – The Bureau of Indian Standards (BIS), under the directive of the central government, is set to make hallmarking mandatory for jewelry made from 9-carat gold. The rising price of gold in recent times has led to a surge in demand for jewelry made from lower-carat gold, particularly 9-carat, raising concerns about the purity of such jewelry. In response, the government has decided to introduce hallmarking for 9-carat gold jewelry to ensure authenticity and prevent fraud.
The BIS has initiated discussions with key stakeholders in the market regarding the hallmarking of 9-carat gold jewelry. Soon, consumers purchasing 9-carat gold items will receive a certificate of purity. Currently, hallmarking is mandatory for gold jewelry made from 24-carat, 23-carat, 22-carat, 18-carat, and 14-carat gold, with the rule being implemented nationwide since 2022.
Growing Demand for Lower-Purity Gold Jewelry
Experts attribute the increasing demand for 9-carat, 14-carat, and 18-carat gold jewelry to the rising price of gold. While 22-carat gold has traditionally been the most commonly used for jewelry, the significant price difference has led to a shift in consumer preferences. Currently, 24-carat gold is priced at approximately ₹73,000 per 10 grams in the domestic market, while 22-carat gold is trading at around ₹67,000 per 10 grams. In contrast, 9-carat gold is available at a much lower price, around ₹25,000 per 10 grams. This price gap has driven consumers towards lower-purity gold, but concerns regarding its purity have surfaced.
To address these concerns and safeguard consumer interests, the government has instructed BIS to extend hallmarking to 9-carat gold jewelry, ensuring that buyers are not misled or defrauded.
India’s Gold Market Outlook
According to a report from the World Gold Council, India is the second-largest consumer of gold globally. This year, the country’s gold demand is expected to reach 750 tons. Despite rising prices, gold demand in India has increased by 1.58% so far, and it is projected to grow by over 2% by the year’s end. Given this rising demand, the government is placing a strong emphasis on protecting consumer interests, leading to the push for mandatory hallmarking of lower-purity gold, including 9-carat jewelry.
This move aims to provide greater transparency and trust in the gold jewelry market, ensuring that consumers receive authentic and certified products, even at lower price points.
