India’s New Government Likely to Reward Mandatory Status to Gold Jewelry

The purity of gold is a big question mark that terribly hangs before the gold consumers in India.

NEW DELHI (Scrap Monster): The purity of gold is a big question mark that terribly hangs before the gold consumers in India.

By considering booming jewelry business, India’s newly sworn-in government is likely to increase the hallmark certificate centers to 1,000 in the next one to two years from the 290 centers at present as the part of legalizing the hallmarked jewelry pieces.

Before two years, Bureau of Indian Standards (BIS) accepted the price spike charges request to Rs 25 per jewellery from the earlier charge of Rs 18, Harshad Ajmera, president, Indian Association of Hallmarking said.

There are reported many cases regarding of impure gold jewelry selling.

'With mandatory hallmarking, big brands will be benefitted the most. The local jewellers make their margins on impure gold sales and that is also one of the reasons why they sell at lesser price than the big brands,' said Kaushalendra Singh Sengar, CMD, Incubators Group.

The mandatory status of hallmarking gold jewelry sold in India, although declared, is yet to be implemented. But it has a wide acceptance among consumers. This often leads to fake hallmarking of jewelry which is under the regular scrutiny of the bureau.

• Gold climbs to over one-month high after Fed rate cut; silver hits record high
• Gold gains after Fed rate cut, silver hits all-time peak
• Gold rises ahead of Fed rate cut decision, silver hits $60/oz milestone
• Gold Prices Extend Strong Rally as Market Awaits Key Fed Decision