Government introduces hallmarking for 9 karat gold; check key details 

The government has officially notified the hallmarking of nine-karat gold jewellery, which is expected to boost demand for lightweight gold jewellery amidst skyrocketing rates of the precious metal. 

Hallmarking is the process of officially stamping or marking precious metal items like gold to mark their purity and fineness. Currently, hallmarking is done only for six purity categories—14K, 18K, 20K, 22K, 23K and 24K, as mandated by the Bureau of Indian Standards.

In 2024, media reports said that India will soon make hallmarking of 9-karat (KT) gold jewellery mandatory to make gold jewellery more affordable. 

On July 19, the Ministry of Consumer Affairs issued a notification regarding this, finally allowing for the hallmarking of 9 karat gold, according to a report by ET.

The Bureau of Indian Standards (BIS) will need around a month to finalise the necessary formalities in hallmarking centres across the country to accommodate 9 karat gold, according to an ET report.

While 24K gold has been hovering near ₹1 lakh per 10 gram, and gold rates (24k) are consistently above ₹96,000 per 10 gram for a while now, 9 karat gold is significantly cheaper, priced at nearly ₹37,000 per 10 gram. Including the 3% GST on physical gold, its price comes to just near ₹38,100 per 10 gram, while 24K gold remains near the ₹1 lakh mark when including taxes. 

Ahead of the festive season, this move is expected to boost jewellery sales and enable middle-class individuals to buy gold jewellery at affordable rates.

It is estimated that Indians buy over 800 tonnes of gold every year, and rural India accounts for almost 60% of this demand.

Gold prices have surged by over 25% just this year, driven by major geopolitical conflicts and market volatility. Gold, as a safe-haven asset, becomes more attractive when there is instability in the markets. When other investments turn risky, investors find refuge in gold. 

Gold rates on Tuesday, July 22, climbed above ₹1 lakh per 10 gram (24K, 99.9% purity) in Delhi on increased demand by investors.