Buying gold? Now even 9 karat gold will be hallmarked; here’s what you should know

The authorities formally notified hallmarking requirements for 9 karat gold, in a transfer aimed toward reviving shopper curiosity in gold jewelry amid record-high costs. Until now, the Bureau of Indian Standards (BIS) had permitted hallmarking just for gold in 24, 23, 22, 20, 18, and 14 karats.The ministry of shopper affairs issued the notification on Friday, at a time when gold gross sales by quantity have plunged by 60% in June, marking the steepest drop because the Covid-19 pandemic.“We had been urging the government to introduce hallmarking of 9 karat gold for over a year. The government’s decision will spur movement of gold in the rural areas where the budget for gold jewellery purchase is much lower than urban,” Surendra Mehta, nationwide secretary of the India Bullion & Jewellers Association (IBJA) advised ET. He added that even in city centres, youthful customers are prone to discover 9 karat jewelry extra accessible.Estimated to value Rs 37,000 per 10 grams, 9 karat gold is considerably extra inexpensive than 24 karat gold, which was priced at Rs 97,828 per 10 grams on Friday. Including the three% Goods and Services Tax (GST), retail costs for 9 karat gold come to round Rs 38,110 per 10 grams, whereas greater karatages cross the Rs 1 lakh mark.The transfer obtained help from jewellers, particularly forward of the essential festive season. Demand for gold jewelry historically normally surges from Rakshabandhan in August via Diwali, adopted by the winter marriage ceremony season beginning in November.India consumes 800-850 tonnes of gold yearly, with rural India accounting for almost 60% of this demand, in accordance with IBJA.Gold costs have surged greater than 25% over the previous yr, largely fuelled by world uncertainties following the Russia-Ukraine battle. As a consequence, many giant jewellers have already began providing 9 karat choices to draw cost-conscious clients.Industry consultants consider hallmarking of 9 karat jewelry will ease jewellers’ working capital pressures, which have risen sharply as a result of value hike. “Many gold jewellery units have started shifting from manufacturing high karatage jewellery to 14 karat and 9 karat jewellery. The hallmarking for 9 karat jewellery will further boost this shift,” stated a senior gold commerce analyst, cited by ET.Suvankar Sen, MD & CEO of Senco Gold, famous that decrease karat gold can also be opening up design potentialities. Sen stated that trendy designs come out neatly in 9 karat gold, permitting for innovation. He added that hallmarking will not solely improve buyer belief but additionally strengthen India’s gold jewelry export potential.Mehta added that the BIS will require a couple of month to place in place the required formalities throughout hallmarking centres nationwide to accommodate 9 karat gold.