Impure Indian gold jewellery? Not anymore! Hallmarking jumps to 80%

Of the 621 tonnes of gold jewellery manufactured in India in 2018-19, 494 tonnes were hallmarked for purity, show data analysed by GFMS

There are doubts in the organised gold jewellery trade on the official data, which says around 80 per cent of the sales in 2018-19 were of the hallmarked variety, up from 50 per cent in 2013-14.

Noting the number of unlicensed jewellers are a multiple of the licensed ones, they say they find it difficult to believe the latter sold only a fifth of the total.

Compulsory hallmarking of jewellery is not in place but the central government is aiming to gradually get there. The Bureau of Indian Standards (BIS) oversees this and also provides the data in this regard. Analysis by GFMS of their figures showed as much of 494 tonnes of jewellery was hallmarked in 2018-19, against total fabrication of 621 tonnes.

There are many reasons. One is the rapid increase in the number of BIS-approved hallmarking centres. Debajit Saha, senior analyst at GFMS, adds: “Organised jewellers encourage consumers to buy only hallmarked jewellery. This has forced small jewellers to go for hallmarking. Consumer awareness has also increased tremendously. As a result, instead of following the old maxim of ‘ghar ka sunar’ (an exclusive goldsmith to a household), consumers have been moving towards purity standards.”

BIS has permitted only 14-carat, 18-carat and 22-carat jewellery to be hallmarked. 

Harshad Ajmera, president of the Indian Association of Hallmarking Centres, said: “Apart from the increase in jewellery hallmarked, the standard of hallmarking seems to have improved.” He points to BIS data that rejections were 30 per cent only five years earlier, meaning 30 per cent of hallmarked jewellery was not conforming to the standard. From there, this has improved to 10 percent over the past two years.

BIS officials randomly collect samples of hallmarked products from jewellers and test the purity. In 2016-17, of 2,965 samples collected, 892 were rejected or around 30 per cent. In 2018-19, rejection was 534 out of 5,013. Ajmera says the sampling is too small and samples should be collected from each licensed jeweller at least once a year. 

However, Surendra Mehta, secretary, Indian Bullion & Jewellers Association, says: "There are an estimated 300,000-400,000 jewellers in India. Assuming those in the business of only gold jewellery are between 100,000 and 150,000, does it mean this many are selling only 20 per cent of the total?”

If the BIS data is true, he says, it casts doubts on the actual consumption of gold jewellery.

A veteran jewellery industry official says, “Jewellery made from recycled gold, especially in smaller cities and rural areas, are not 

getting hallmarked or counted as part of any formal mapping of fabrication. Hence, the real portion of jewellery being hallmarked could be less than what is being discussed."

Ajmera says BIS needs to better its monitoring of hallmarking centres and even its officials who oversee the process, to counter suspicion of collusion in issue of 

hallmarking certificates. “BIS should disclose all details of market samples approved and not approved. Second, while BIS audits all approved centres, these results should also be scrutinised at 

random."