India to require gold hallmarking

Gold hallmarking is to become mandatory in India from January 1st 2008 under new proposals put forward by the Indian government.

In order to boost its gold jewellery exports, India hopes to join the International Convention on Control and Marking of Precious Metals – or the Vienna Convention – by the end of this year.

To become a member of the convention, countries must establish a hallmarking system to safeguard consumers. India must do so if it to conform to the convention's rules.

L Mansingh, secretary in the consumer affairs department, said: "The initiative is being undertaken to protect consumer interest and to boost gold jewellery exports from the country."

The Indian government will provide financial assistance to create the required infrastructure for the new hallmarking system and it will launch an awareness campaign to make consumers, retailers and manufacturers aware of how it will affect them.

Hallmarking involves testing articles made of precious metal and marking them to indicate that they are of a minimum standard of purity. Hallmarks are official marks used in many countries as a guarantee of the purity or fineness of gold jewellery.

Hallmarking is extremely important in India, because the country's jewellery is generally made of much purer gold.

Indeed many consumers in India are being cheated by jewellers, according to a survey conducted by the Bureau of Indian Standards (BIS).

It said that 88 per cent of the jewellery being sold showed between 28 and 37 per cent less purity than was claimed.