How to check hallmarking details of your jewellery.

 Starting 16 June, all jewellers must sell hallmarked jewellery. The government has taken the step to ensure there is no mis-selling. Many times, jewellers may sell jewellery stating that it’s 22-karat, but it could be of lower purity in reality.

But if a jeweller wants to, it can also fake hallmarking details. To ensure that the hallmarking on jewellery is genuine, there are a few things that you can look at.

Hallmark is a certification of purity. A jeweller can get the hallmark certificate from assaying and hallmarking centres (AHCs). The Bureau of Indian Standards (BIS) accredits these centres. The jeweller must also get a licence from BIS to get its goods hallmarked.

A piece of hallmarked jewellery tells you the purity of gold – whether it’s 18-karat, 20-karat or 22-karat. When buying jewellery, you will notice three marks on hallmarked jewellery—purity, assaying or hallmarking centre’s identification mark, and the jeweller’s identification mark/number.

To ensure that the details are genuine, always buy from a jeweller registered with BIS. You can also ask the jeweller to show the BIS licence.

The next thing to do is check the bill. The regulations require the jeweller to mention the hallmarking charges separately. The AHC charges a fee of ₹35 per piece.

According to regulations, the bill or invoice must separately indicate the description of each article, net weight of the precious metal, purity in karat and fineness, and hallmarking charges.

If you are still unsure, you can get your jewellery tested from any of the BIS-recognized AHCs. The centres undertake the testing of jewellery of consumers on priority on a chargeable basis.

After testing, the AHC will issue a report. If the jewellery is of lesser purity than what is stated in the bill, the AHC, which did the initial certification, will have to refund the consumer’s fees.

You can also approach your jeweller with the report as it is also liable to compensate customers in such cases.

Hallmarking will help in curbing mis-selling. But ensure that you do your due diligence, too.

Jewellery Makers Gain On Mandatory Hallmarking Of Gold Jewellery

 

Shares of jewellery makers rose after the government reiterated its move for mandatory hallmarking of gold jewellery but extended its deadline to June 15 given the lockdowns in th various parts of the country to deal with Covid-19 pandemic.

Kalyan Jewellers rose 5 per cent, Titan Company advanced rose as much as 3 per cent, Thangamayil Jewellery rose 2 per cent, PC Jeweller advanced 3.13 per cent, Rajesh Exports climbed 1.7 per cent and Tribhovandas Bhimji Zaveri advanced 1.5 per cent.

Analysts say that listed jewellery retailers and makers will benefit from government’s move for mandatorily hallmarking gold jewellery.

Gold hallmarking is a purity certification of the precious metal and is voluntary in nature at present.

According to World Gold Council, India has around 4 lakh jewellers, out of which only 35,879 have been certified by the Bureau of Indian Standards (BIS).

In November 2019, the government had announced that hallmarking of gold jewellery and artefacts would be made mandatory across the country from January 15, 2021. However, the deadline was extended for four months till June 1 after jewellers sought more time in view of the pandemic.

A committee, headed by BIS Director General Pramod Tewari, has been formed to ensure proper coordination and resolve the implementation issues. The committee would also comprise Nidhi Khare, additional secretary, Department of Consumer Affairs and representatives of jewellers associations, trade and hallmarking bodies, among others.

Tips to care for your jewellery: What you need to know

 

All of us love our gold jewellery. It is therefore only fair that the time and interest that we give to buying our favourite pieces should also go into caring for them. Storing them properly and cleaning will ensure that they retain their charm. We bring you some tips that can help you maintain those trinkets and increase their shelf life, courtesy of Deepshikha Gupta, VP Designer, Melorra.

Segregate and store

Jewellery pieces must be stored separately to avoid scratches or breakage. You can store them in soft-lined compartments and away from direct sunlight, dampness, or even extreme temperatures. Often, it is better to store them in the boxes they come with. You can also wrap gold and precious/semi-precious stones in acid-free tissue or cotton to ensure they don’t catch dust or moisture.

Wear them with care

Your jewellery should be the last thing you put on when you get ready. Makeup and other cosmetics can contaminate jewellery, so let all of that dry before you wear your jewellery. This is because the chemicals in these can cause discolouration.

Clean them gently

Make sure to regularly and gently clean all your jewellery for removing oil, dust or other kinds of contamination. You can use simple things like soap and water and a soft toothbrush to clean them. However, do not rub or handle them roughly. Take a jeweller’s advice if you are unsure of how to clean them. There are special jewellery cleansing materials available for gold.

Buy certified jewellery

Right paperwork is as important for precious jewellery as for anything else that you own. This will ensure that you can get the pieces rectified in case there is damage. Keep all the certificates with you, especially in the case of diamond jewellery.

“Lightweight gold jewellery is for any time, anywhere. Hence, caring for them is as important as servicing your car or any other household item. This will make sure that your jewellery retains its shine and is always ready to wear. Following these tips can help and also ensure your jewellery game is always on point,” she added.

Buying gold? You must know these things about Hallmarking

 

Hallmarking is the determination and recording of the proportion of precious metal content in an artefact or piece of jewellery

If the ongoing pandemic is making you double down on investments in precious metals, there’s some good news for you. Last year, the government had issued an order stating that only gold and silver jewellery and artefacts that are hallmarked can be sold from January 1, 2021. After being postponed, this rule is now to set come into effect from June 1.

What is it?

Hallmarking is the determination and recording of the proportion of precious metal content in an artefact or piece of jewellery. The hallmark measures and tells you the extent of actual gold or silver content that is present in an article that you’re buying. This is done in Assaying and Hallmarking (A&H) centres which are present across the country. The jeweller seeking to hallmark his wares submits them to A&H centres where the testing is done. If found to meet the requirements of the standard, a hallmark symbol is applied.

In India, the hallmark symbol will certify the purity and fineness of precious metal articles in accordance with standards set by the Bureau of Indian Standards (BIS), which is the national quality-setting body. The Indian standard specifies three grades for hallmarking of gold jewellery and artefacts — 14 Carat (K), 18 Carat and 22 Carat. And it specifies six grades for hallmarking of silver jewellery and artefacts — 990, 970, 925, 900, 835 and 800. For hallmarking of gold bullion and coins, a refinery or a mint needs to obtain a licence.

Why is it important?

Although gold and silver can be bought in several ways, in India, jewellery is the most common way of buying these precious metals. Indians are estimated to own over 25,000 tonnes of gold. But the actual worth of all this wealth locked up in gold is uncertain as jewellery purchases in India have traditionally been beset by low caratage. When the new regulations kick in, this will change as jewellers will be mandated to sell only hallmarked jewellery. If you buy gold or silver jewellery or artefacts with the BIS mark, you can be sure of the stated caratage.

The hallmark consists of four components for gold: purity, fineness, assaying centre’s identification mark and jeweller’s identification mark. Purity and fineness are represented through a symbol that combines cartage and purity. For instance, the symbol 22K916 means that the item is made of 22 carat gold and 91.6 grams of gold per 100 grams of jewellery. However, the jewellery or artefacts you buy are seldom made of 24 carat gold. This is because 24 carat gold is too malleable to be converted to jewellery; copper or silver are usually alloyed with it to craft jewellery or artefacts, making 22 carat or 18 carat the normal standard of purity for such items.

For silver, the hallmark consists of three components — fineness, assaying centre’s identification mark and jeweller’s identification mark. If the fineness is 990, it indicates that the item has 99 gm of silver per 100 gm of the jewellery.

Why should I care?

With hallmarking being optional currently, jewellers and vendors of artefacts adopt it selectively. Only 40 per cent of the jewellery sold in India is estimated to be hallmarked currently. This has paved the way for jewellers passing off lower quality 18K gold as 22K gold. This comes back to bite you as you try to exchange old gold for new or to monetise your physical bullion holdings.

Come June 1, 2021, the caratage issues associated with jewellery may abate as hallmarking becomes mandatory. If you are unsure of the purity, jewellery can be tested at any A&H centre where testing will be undertaken, and a report issued. In case hallmarked jewellery is found to be of lesser purity, the testing charges will be refunded, and the jeweller is obliged to replace the item.

The bottomline

Without hallmarking, all that glitters is literally not gold.

Jewellers body seeks to put off mandatory hallmarking.

 The All India Gem Jewellery Domestic Council has urged the Department of Consumer Affairs under the Union Ministry of Consumer Affairs, Food and Public Distribution to postpone the deadline for mandatory hallmarking of gold jewellery by a year.

The mandatory gold jewellery hallmarking was to be implemented from June.

Out of the 733 districts in the country, only 245 districts now have assaying and hallmarking centres (as per BIS data) and GJC urged the BIS to ensure that there is at least one A&H Centre in each district in the country.

GJC said it is essential to have proper accredited, fully functional assaying and hallmarking Centres in all districts with proper infrastructure and trained personnel prior to the requirement of mandatory hallmarking.

As per BIS data there are 940 assaying centres in 245 districts across India and the number of jewellers registered with BIS are 31,585. However, there is no presence of hallmarking centres in 488 districts.

Even the existing Centres are concentrated only in and around the urban area or clusters where there is heavy concentration of jewellers.

Only eight per cent of the entire country has the access to A&H centres.

Ashish Pethe, Chairman, GJC, said, “There are various operational and procedural issues in relation to implementation of the mandatory requirement. This will also severely affect the jewellery industry, leading to drastic consequences such as cessation of business, loss of livelihood, litigation and unnecessary waste of time and energy.”

Mandatory hallmarking in its current state has the potential to affect the livelihood of millions of people and will lead to huge disruption in the century’s old jewellery business, he added.

Due to Covid-19, the jewellery business is already suffering, and mandatory hallmarking should be postponed by at least an year till the infrastructure is in place, he said.

Given the on-going Covid-19 pandemic and the fact that various parts of the country continue to be in a lockdown scenario, GJC said, “There are many states and Union Territories such as Arunachal Pradesh, Ladakh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Andaman and Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu and Lakshadweep where there are no assaying Centres. Jewellers are closing their business and unemployment are leading. It is therefore of paramount importance for the government and BIS to first consider the practical issues.”

Know what you need to check while buying gold jewellery.

 Come 1 June, and jewellers will be able to sell only hallmarked gold jewellery. The government had initially made hallmarking compulsory from 15 January 2020. However the deadline was extended considering the circumstances that arose due to covid-19. Now, consumer affairs secretary Leena Nandan has said no extension of deadline has been sought and that gold hallmarking will become mandatory from 1 June.

Surendra Mehta, the national secretary of India Bullion and Jewellers Association (IBJA), though, has said the association will be seeking an extension of deadline as jewellers will not be able to comply with the deadline as they are stuck with old stock they were unable to sell due to covid-19. Under the new regulations, jewellers can only sell gold jewellery with hallmarking of 14, 18 and 22 caratage.

It remains to be seen whether the government will extend the deadline or not. However, if you are planning to buy gold jewellery, it will anyways be advisable to buy hallmarked jewellery.

Let us understand how one can verify whether a piece of jewellery is hallmarked or not:

Hallmark is basically a certification of purity given by assaying and hallmarking centres (AHCs) accredited by the Bureau of Indian Standards (BIS). A jeweller selling hallmarked jewellery has to necessarily get a licence from BIS before they get their jewellery or artefact hallmarked at any BIS-recognized assaying and hallmarking centres.

The purity of gold is measured in caratage. While 24-carat (K) gold is considered the purest, it can’t be used for making jewellery as it is too soft. Hallmarking of jewellery is done in three categories of caratage—14K, 18K and 22K—which are suitable for making jewellery. In percentage terms, 14K denotes 58.5% purity (hallmarked as 14K585), 18K denotes 75% purity (hallmarked as 18K750) and 22K denotes 91.6% purity (hallmarked as 22K916).

You need to check three marks on hallmarked jewellery—purity of caratage, assaying, hallmarking centre’s identification mark, and the jeweller’s identification mark/number.

The hallmarked caratage and the day’s price of gold can help determine the estimated price of the jewellery you buy. So if the price of 10gm gold of 24K is Rs30,000 and you are buying 22K jewellery of 10gm gold, its price would be 91.6% of Rs30,000, or Rs27,480. The jeweller may add making charges plus taxes to the price of gold.

So, the next time you go to buy jewellery, it is better to buy a hallmarked one.

Recovery in gold prices could extend further.

 Gold price is rising in both domestic and international markets. According to commodity experts, gold could rise further from current levels. They say that depreciating rupee, small saving schemes yield going below the rising inflation rate and rising COVID-19 fear may once again help precious bullion boost its safe-haven appeal. They see the possibility that in next two to three months, gold price at Multi Commodity Exchange (MCX) may hit ₹49,000 per 10 gm while in the international markets, the precious metal may go up to $1,800 to 1,820 per ounce levels.

Gold on Friday closed at ₹46610 on MCX, rebounding from year-low levels of ₹44,100, hit earlier this month.

Speaking on the gold price outlook in next two months; Anuj Gupta, Vice President — Commodities & Currency trade at IIFL Securities said, “Gold price is oscillating around $1,740-45 per ounce range but overall outlook for gold price is bullish. In international market, we can expect gold price to go up to $1,800 to $1,820 per ounce while at MCX the yellow metal price may go up to ₹48,000 per 10 gm.” Gupta said that depreciating Indian National Rupee (INR) against the US Dollar (USD), lowering US bond yield and rise in US unemployment data is supporting gold price rally. Apart from this, rising COVID-19 cases are once again putting fear among the investors and they are looking at gold as a better investment option.

Small Saving Schemes vs Inflation

Expecting gold to re-emerge as an investor’s haven; Amit Sajeja, Vice President — Research at Motilal Oswal said, “Small Saving Schemes’ yield have gone below the inflation as average inflation rate has gone above 6 per cent while the small saving schemes are yielding around 5 to 5.5 per cent. In that case, small saving schemes’ investors are looking towards gold as a better option and that is getting visible in the rising consumption of gold in India.” Sajeja went on to add that in the last five months, gold imports have gone up drastically and the upcoming marriage season is going to further fuel gold demand in India. So, gold price is expected to remain bullish in the next one quarter, even when the international triggers get controlled.

Sajeja said that lowering of import duty on gold has also helped gold price rally and predicted that in the next one week to 10 days, gold price may go up to ₹47,500 per 10 gm at MCX. He said that in the next three months, gold price may go up to ₹49,000 per 10 gm at MCX. Hence, one should maintain ‘buy on dips’ strategy and keep accumulating gold on every 4-5 per cent dip from its existing levels.

Even, the income tax officer conducting a search may not seize even higher quantity of gold jewellery based on factors, including family customs and traditions. It is solely at the discretion of the officer.

What are the challenges you face in a market that is inclined more towards gold?

 Coming from a time where consumers had no idea or knowledge about platinum, I believe we have come a long way. Back when PGI was launched in India, there were only two metals that existed for jewellery – gold and silver. Gold was set as the benchmark of preciousness. In fact, in the early days, consumers hadn’t even seen platinum jewellery. Platinum was not a part of our stories, history or mythology. We did not even have a vocabulary for platinum in our local languages, unlike gold, silver, or other precious stones.

From there, to now having our core consumers identifying with platinum and for platinum to be synonymous with love and moments of emotional significance is personally very gratifying.

From an industry perspective, the partnerships we have, have led to platinum becoming an integral and strategic part of this ecosystem. Today, platinum is present as a category across 1500+ stores and 300+ cities, with growth up to 10 times in the last decade. It feels truly rewarding to look back on these milestones.

In the current context, the favourable pricing of platinum provides an incredible opportunity for the growth of platinum jewellery.

How has the platinum jewellery bounced back during the pandemic as we begin to move towards recovery?

Looking back at 2020, the market started opening up in stages, particularly after September. While the Covid-19 situation had impacted buying patterns of consumers all over the world, the unlock phases were instrumental in ushering demand for jewellery, particularly for platinum.

From July 2020 onwards, we had seen demand slowly rebuilding especially from tier II cities and smaller towns, which were less affected by the pandemic. In October 2020, we launched a consumer and retail activation programme to bolster demand for platinum jewellery. The results have been very positive with all participating retailers posting a 29% growth during the activity period versus the same period in 2019.

From a consumer behaviour point of view, individuals were looking at ways to claim back a sense of normalcy and a means to celebrate those everyday moments that became all the more important given the gloom that had accompanied those dreaded initial months of the lockdown. Jewellery served as an instant pick-up and platinum, in particular, stood out as the metal is all about love, meaning and reaffirmation.

In India, jewellery plays an integral role where it tends to have a store of value and serves as a marker of social and personal milestones in life. With many consumers re-evaluating their priorities in life and gaining a renewed appreciation for loved ones, spending on products that represent personal meaning is a key expression of their feelings for family and friends, thus creating an opportunity for platinum.

In the recent Union Budget, it was heartening to see that the import duty on platinum has been reduced to 10%, which is a welcome decision made by the Government. This will boost consumer sentiment and, in turn, demand, benefiting both the industry and the consumers as the market recovers in 2021. We look forward to a year of a strong recovery.

Everyone is obsessing over ethical gold jewellery.

 What is more beautiful than wearing gold? Wearing it consciously! With the rising need to take a step back and rethink our everyday choices, trends and terms like recycled, redipped and fair trade gold is making a lot of noise across the globe, to ensure that both production and purchase of gold is done ethically. From white gold being reused by redipping, to heirloom pieces being worn and restored, and fair trade paying their due to gold miners, gold lovers are ensuring that wearing/buying gold is ethical by all means Here’s why there has been a lot of focus on ethical gold lately.

White gold means redipping to make it look appealing

Certainly, while gold looks more appealing, but it requires redipping to retain its lustre, shine and colour. “While one can always have the option of exchanging an old ornament for a new one, redipping helps restore white gold, thus reducing carbon footprint generated while making a new piece of jewel,” says jewellery designer Kanan Mali.

Recycling gold is an eco-friendly measure

Several jewellery brands and gold lovers are now making recycling gold mainstream in order to save the environment and promote ethical gold jewellery. “Old jewellery that is broken or needs a makeover or is out of fashion, recycling is a great way to infuse a new life in them without hurting the environment,” says Kanhaiyalal Sharma, who deals in gold recycling.

Heirloom pieces are back in vogue

While heirloom pieces are a great way to stay connected to your roots, they are also great for nature. “A couple of years ago, youngsters would often exchange the inherited gold for something new, but now they are gravitated to wearing these traditional pieces with pride. The rise of heirloom jewellery is also a result of their belief in sustainability and saving energy used in creating new gold items,” adds Kanan.

The rise of the fairtrade gold

According to Fairtrade Gold, a platform that works towards the upliftment of gold miners and artisans, buying fairtrade gold ensures that small-scale and artisanal miners were paid a fair price and given financial security. “In recent times, due to several fashion revolutions, the fairtrade certification has got momentum which means gold is not just sourced responsibly, but the hands behind them – the miners, small scale artisans and jewellers – get a fair share in the business,” adds Kanhaiyalal. It also ensures that no child labour is involved or there is over-exploitation of mines in the world.

Check how much gold or gold jewellery can you Buying or hold legally in India?

 Buying gold jewellery is an age-old tradition in Indian families. While some buy it for consumption (own use) purpose, others buy it for investment purposes. In India, gold is also bought for gifting on occasions like marriage, birthdays and other functions. Many Indians also buy gold when they have an investible surplus. In some families, buying gold is always believed to be auspious on occasions like Dhanteras, Diwali and Akshay Tritiya.

While most of the families in India hold gold, they must know how much gold a person can legally hold in India?

This question holds significance as holding excess gold can attract income tax scrutiny especially, in view of the Modi government’s thrust on unearthing black money and the recent changes in income tax laws. So in order to remain legally correct, you should know the laws pertaining to gold holding.

According to income tax experts, one should not worry if the source of gold holding is legitimate and as per the income level of the individual.

Worth mentioning here is that as per Section 132 of the Income Tax Act, 1961, tax authorities can seize any jewellery, bullion or valuable articles found at the time of search if you can not justify the source.

As per income tax laws, there is no limit to the quantity of gold an individual can possess if the source of such holding is legitimate and can be explained. If you have purchased that gold then you can show the original invoicesor if you have inherited gold from your family then you can furnish a copy of Will or family settlement deed. If jewellery is received as a gift, then you can furnish the gift deed.

The Central Board of Direct Taxes (CBDT) vide press release dated December 01,  2016, had clarified that there is no limit on holding of gold jewellery or ornaments by anybody provided the same is acquired from sources explained including inheritance. For this purpose, the CBDT relied on its earlier instruction no.1916 dated May 11, 1994.

According to the clarifications issued by CBDT time and again, an individual can hold any quantity of explained gold. But the taxman has always the right to search or question the source of gold holding at residential premises or in the locker maintained at a bank.

In case of any income tax search, the tax authorities can confiscate the jewellery or gold if it is found that the gold holding is not in line with the income level of the assessee as reported in his past income tax returns.

However, the Ministry of Finance has clarified in this context that jewellery and ornaments to the extent of below limits will not be seized, even if prima facie, it does not seem to be matching with the income record of the assessee.

– 500 grams for a married lady,
– 250 grams for unmarried lady and
– 100 grams for male member

Even, the income tax officer conducting a search may not seize even higher quantity of gold jewellery based on factors, including family customs and traditions. It is solely at the discretion of the officer.