Gold hallmarking to be upgraded from April, here's how consumers can use it to verify quality

Gold may just be another precious metal for the world, but for Indians, the asset is connected to tradition and is adds glitter to every special event in life. An age-old and reliable investment vehicle, gold is purchased all over the country on Dhanteras and gifted on weddings, defying global prices and trends.

To ensure the purity of this sacred bond between Indians and gold, a new hallmarking system will be implemented from the beginning of FY24 in April.

What's the update from April?

• A mandatory six-digit Hallmark Unique ID on Gold jewellery will be used to trace its jeweller and the purity of the metal.

• The move to make six digits HUID compulsory is meant to end confusion coming from use of both six and four-digit codes.

• Being able to trace the makers, ensures accountability and safeguards consumers against any discrepancy in quality.

• The hallmark on a piece of gold jewellery can also be verified through the BIS smartphone app.

Does hallmarking work as planned?

• First deployed in 2000, hallmarking is like an ISI mark for gold jewellery and bullion, which allows buyers to verify quality.

• As of now, three lakh gold products per day are getting stamped with the hallmark, with centres for the same in 339 districts across India.

• So far, 90 per cent of jewellery being sold in the country is already hallmarked, and consumers are also asking for gold with HUID in districts where it isn't mandatory.

Has gold retained its allure?

Apart from previous generations, milennials and Gen Zs are also investing in gold, which is also available via fintech apps in electronic form.

A price rise and global headwinds have affected this demand for gold, which has dropped 40 per cent, making verification of quality even more crucial.