As per a government announcement in June 2021, hallmarking of gold jewellery has been made mandatory to ensure that consumers get assured quality. It will be carried out in a phased manner. In the initial phase, the mandatory hallmarking will be implemented in 256 districts, with small jewellers (annual turnover of under Rs 40 lakh) exempted from the requirement. These districts will have Bureau of Indian Standards (BIS)-recognised assaying and hallmarking centres for gold jewellery and artefacts that will certify if a product is 14, 18, or 22 carats. However, eventually gold of additional carats 20, 23, and 24 will also be allowed for hallmarking.
The hallmarking of jewellery/artefacts will enhance the credibility of gold jewellery and customer satisfaction through third party assurance for the marked purity/fineness of gold, and consumer protection. Since India is the biggest consumer of gold, the level of hallmarked jewellery should also be very high. According to the World Gold Council, India imports 700–800 tonnes of gold annually. Unfortunately, the level of hallmarked jewellery is very low in the country with around 30 to 40 per cent of gold jewellery being hallmarked currently.
Hallmarking of Gold
The government had announced mandatory hallmarking of gold several years back. However, it could not be implemented due to postponing the dates because of COVID-19 pandemic. Earlier, the government had announced the mandatory hallmarking of gold jewellery and artefacts across the country from January 15, 2021.
The BIS defines hallmarking as the “accurate determination and official recording of the proportionate content of precious metal in precious metal articles.” So, it is a “guarantee of purity or fineness” of precious metal articles. The BIS has been running a hallmarking scheme for gold jewellery since April 2000.
The government in June 2018, notified two categories—gold jewellery and gold artefacts; and silver jewellery and silver artefacts—under the purview of hallmarking.
As such, hallmarking in India will be available for jewellery of only two metals—gold and silver. A certain category of jewellery and items are exempted from the mandatory requirement of hallmarking, such as export and re-import of jewellery—jewellery for international exhibitions and jewellery for government-approved B2B domestic exhibitions. Similarly, items such as watches, fountain pens, and special types of jewellery like Kundan, Polki, and Jadau will also be exempted.
Reasons for Low Level of Hallmarked Jewellery
One of the reasons for low level of hallmarked jewellery is non-availability of sufficient assaying and hallmarking centres (A&HC). Currently, there are about 35,879 certified jewellers across the country, whereas the number of A&HC is only 945. Presently, 940 assaying and hallmarking centres are operative. Out of this, 84 centres have been set up under the government subsidy scheme in various districts. One centre can hallmark 1,500 articles in a day and the estimated hallmarking capacity of centres per year is 14 crore articles.
Sidelight
Identification of Fake Gold Jewellery
Gold can be easily imitated into fake jewellery and metal blends. As per most international standards, any jewellery or metal consisting of less than 41.7 per cent, or 10 karats of gold is not considered to be real gold. Therefore, knowing how to test for the genuineness of gold could save a lot of money. By following few easy steps, it can be tested at home to check if it is real or not.
- Look for Hallmark It is the easiest way to find out whether your gold is real or fake. Sellers generally make an impression in each gold piece of jewellery they sell, which tells us what percentage of gold an item consists of. The hallmark is often printed on clasps for gold chains, or bracelets and the inner side of gold rings or bangles. Close to this stamp is the manufacturer’s stamp to further clarify genuine gold jewellery.
According to BIS, there are four components that should be there to ensure the purity of gold:
- the common BIS Logo;
- purity in Karat and fineness: According to BIS, gold hallmarking is done only for three levels of karats: 22K916 for 22 Karat gold, 18K750 for 18 carat gold, and 14K585 for 14 Karat gold;
- the Hallmarking Centre’s logo/number; and
- the Jeweller’s own logo/mark/number.
- Magnet Test This is one of the easiest tests to carry out at home. With the help of a simple magnet, genuineness of gold can be checked. Real gold never attracts a magnet, so if the gold jewellery piece is drawn to the magnet, then it is made from, or at least contains, one or several other metals. However, magnet test should be used along with the other criteria as well.
- Float Test For this test, only a container of water is required. Real gold is a dense metal, so it will immediately sink to the bottom of any liquid. Any size of the genuine gold piece will fall directly to the bottom of the container if immersed fully whereas fake gold will float or hover above the bottom of the container. Real gold never rusts or discolours when wet.
- Ceramic Test Another test is to rub the gold piece over a ceramic plate. On rubbing, if the gold piece leaves some gold streak on the plate, the gold is real, while if the streak is black, then it is fake.
- Acid Test Pure gold is never affected by any acid as it is resistant to oxidation or corrosion. For this test make a tiny scratch on the surface of gold item and pour a small drop of liquid nitric acid carefully on that mark and wait for a reaction. Fake gold will immediately turn green at that spot, and gold-over-sterling silver will become milky in appearance. If there is a clear drop of liquid that does not change colour then the gold is not forged as pure gold will not react with the nitric acid.
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