Gold hallmarking finds support, but consumer awareness remains low: Survey

Even as gold and silver prices surge to record highs, Indian consumers’ appetite for precious metal jewellery remains strong. A recent survey by LocalCircles reveals that while 73% of consumers support mandatory gold hallmarking, most are unaware of how to validate authenticity.

To protect buyers from fraud and position India as a global gold hub, the government made hallmarking compulsory from July 1, 2023. Under the Bureau of Indian Standards (BIS) Act, hallmarked gold must carry a six-digit Hallmarking Unique ID (HUID), certifying purity and authenticity. However, only 18% of consumers surveyed knew that hallmarked items must bear this six-digit alphanumeric code.

Among those who purchased gold jewellery in the past year, 65% said their purchase was hallmarked, 11% admitted it wasn’t, while 24% were unsure. Many consumers continue to trust jewellers’ claims without checking for the official hallmark.

The LocalCircles survey gathered over 62,000 responses from 336 districts across India, with 61% of respondents being men and 39% women. Participants spanned Tier-1 (45%), Tier-2 (27%), and Tier-3, -4, -5, and rural areas (28%).

Hallmarking, however, is not mandatory for all gold products. Exemptions include Kundan, Polki, and Jadau jewellery, items under two grams, and gold articles like wires, sheets, and coins. Watches and fountain pens made of gold are also excluded.

Since the launch of mandatory hallmarking, the number of registered jewellers has surged from 34,647 to over 1.94 lakh, and the number of Assaying and Hallmarking Centres (AHCs) has grown from 945 to 1,622. Over four lakh gold items are hallmarked daily. The fourth phase of the programme, implemented in November 2024, has expanded coverage to 361 districts.

While mandatory hallmarking is a major step toward consumer protection, the findings highlight an urgent need for greater awareness about verifying gold authenticity — especially the critical HUID detail.