Context:
India is poised to introduce mandatory hallmarking for 9-karat gold jewelry. This regulatory change is driven by the increasing consumer demand for more affordable gold options. The hallmarking requirement is intended to guarantee the quality of the jewelry and safeguard consumers within the rapidly expanding gold market.
Relevance:
GS III: Indian Economy
Dimensions of the Article:
- Necessity for Mandatory Hallmarking of 9KT Gold
- Hallmarking Explained
Necessity for Mandatory Hallmarking of 9KT Gold
- Increasing Demand: The rising popularity of more affordable gold options, such as 9KT gold, has significantly boosted its demand due to its lower cost compared to higher-purity gold.
- Purity Verification: Gold purity is gauged in karats. Pure gold is 24 karats, indicating no alloy mixture. As karat levels drop, the alloy content, like copper and silver, increases. For example, 18 karat gold comprises 75% gold.
- Crime Prevention: There’s been a noticeable uptick in chain-snatching incidents, with a reported 32.54% rise in 2022 by the National Crime Records Bureau (NCRB), underscoring the need for secure and identifiable gold products.
- Traceability: Hallmarks serve as unique identifiers for each jewelry piece, simplifying the tracing of stolen items, which deters theft due to the ease of tracking marked items.
Hallmarking Explained
- Hallmarking records the metal content of jewelry, ensuring its purity.
- It compels manufacturers to adhere to established legal standards for gold and silver, safeguarded under the Indian Hallmarking Scheme.
- A hallmark on jewelry remains valid throughout the lifetime of the item.
- All hallmarked items must carry a 6-digit alphanumeric Hallmark Unique Identification (HUID) number, as mandated by the Bureau of Indian Standards (BIS).
- The HUID number boosts buyer assurance by enhancing the traceability of gold products.
- Consumers can verify the authenticity of their gold items using the HUID number through the BIS CARE app, which provides detailed information on the jeweler, purity, and hallmarking center.
- If a hallmarked item is proven to be of lesser purity than advertised, the buyer is entitled to compensation according to the BIS Rules of 2018.
- Hallmarking not only aids in preventing fraud but also ensures that consumers are protected from counterfeit products.
-Source: The Hindu
