In response to skyrocketing precious metal prices, the Indian gold trade is advocating for the hallmarking of 9-carat gold jewelry.
The India Bullion & Jewellers Association (IBJA) has approached the Bureau of Indian Standards (BIS) to implement hallmarking and Hallmarking Unique Identification (HUID) numbers for 9-carat gold, a move aimed at providing more affordable options to consumers.
According to a report in The Times of India, only 14, 18, and 22-carat gold are currently hallmarked with HUID numbers.
The push for 9-carat hallmarking comes as gold prices approach Rs 75,000 per 10 grams, with Tuesday’s price at Rs 74,222.
Silver has also significantly increased, reaching Rs 92,444 per kg in Mumbai’s Zaveri Bazaar, a 5.67% increase from the previous Friday.
According to the report, Surendra Mehta, the national secretary of IBJA, highlighted the impact of rising prices on consumers, stating that the proposal for 9-carat hallmarking is a response to this trend.
9-carat gold costs Rs 27,740 per 10 grams, with an additional 3% GST.
The price rally in precious metals has been attributed to various factors, including geopolitical tensions, expectations of a U.S. Federal Reserve rate cut, and increased Chinese demand.
The report added that Anuj Gupta of HDFC Securities projects silver prices could exceed Rs 110,000 per kg in the long term, while gold may reach Rs 80,000-85,000 per 10 grams by next year’s Akshaya Tritiya.
However, the high prices are affecting demand. Mehta reported a 20% decline in pan-India gold demand, with only wedding-driven purchases sustaining the market.
