73% consumers surveyed give thumbs up to gold hallmarking but most unaware of how to validate authenticity

April 30, 2025, New Delhi: The price of gold and silver may have scaled unimaginable levels in the last year but the desire to invest in jewellery and other articles made of these precious metals remains strong. To make it easier for consumers to make a careful selection without being duped about the quality of the products being purchased, the central government had mandated that all gold jewellery and antiques sold in the market must be stamped with a six-digit Hallmarking Unique ID (HUID) or mark.

The goal of this mandatory hallmarking initiative, which started from July 1, 2023, has been to safeguard consumers from fraudulent practices related to the purity of gold and silver, while positioning India as a major gold hub, and to enhance export competitiveness.

Hallmarked gold or silver is stamped with a tiny mark by the national standards body under the Bureau of Indian Standards (BIS) Act. The mark indicates the exact purity of the metal as per the prescribed standards of regulatory authorities. For example, a hallmark reading "22K" signifies that 22 out of 24 parts of the metal are gold.

Besides the purity of the piece, the mark shows that it has been verified in a licensed laboratory certified by the Bureau of Indian Standards and the jeweller’s unique identification stamp. It is advisable to only purchase hallmarked gold items such as jewellery, coins, and bars from the market to safeguard oneself from being misled. Not many know that hallmarking is not mandatory for gold jewelry items like Kundan, Polki and Jadaau jewelry; any article weighing less than two grams; any article made of gold thread; gold bullion in the shape of bar, plate, sheet, foil, rod, wire, strip, tube or coin. Further, hallmarking is also not mandatory for gold watches and fountain pens.

Following the implementation of the fourth stage of hallmarking in November 2024, the total number of districts covered under Mandatory Hallmarking now stands at 361. Since the launch of Mandatory Hallmarking, the number of registered jewellers has increased from 34,647 to 1,94,039, while the number of Assaying and Hallmarking Centers (AHCs) has grown from 945 to 1,622. Over 4 lakh gold items are currently hallmarked with a unique HUID number per day.

LocalCircles through a survey has strived to find out whether jewellers are indeed complying with the hallmarking requirement and whether consumers are ensuring compliance when purchasing gold or gold jewellery. The survey received over 62,000 responses from consumers located in 336 districts of India. 61% respondents were men while 39% respondents were women. 45% of respondents were from tier 1, 27% from tier 2 and 28% respondents were from tier 3, 4, 5 and rural districts.

65% of consumers surveyed who bought gold jewelelry in the last 12 months confirm that it was hallmarked; 11% say it wasn’t while 24% could not tell

When buying gold jewellery not everyone bothers to check the 6-digit hallmark. They take the jeweller’s word for the purity of the product. The survey asked consumers, “In the last 12 months when you or your immediate family bought gold jewellery was it hallmarked?” Out of 16,784 who responded to the question 65% stated “yes” it was hallmarked; 11% stated “no” and 24% of respondents did not give a clear answer. To sum up, 65% of consumers surveyed who bought gold jewellery in the last 12 months confirm that it was hallmarked; 11% say it wasn’t while 24% could not tell.

Only 18% of consumers surveyed who bought gold jewellery in the last 12 months are aware that hallmarked articles must carry a six-digit alphanumeric code

As mentioned not everyone buying gold jewellery or articles is aware of what hallmark denotes and where to look for it. The survey next asked consumers, “In the last 12 months when you or your immediate family bought gold jewellery, how many digit alphanumeric code did the articles have?” Out of 29,853 who answered the question 18% stated the article they bought had “6 digit” alphanumeric code; 9% of respondents stated “5 digit”; 9% of respondents stated “4 digit”; 9% of respondents “3 digit”; 28% of respondents stated the jewellery “did not have any alphanumeric code” and 27% of respondents did not give a clear answer as they may not have checked it. To sum up, only 18% of consumers surveyed who bought gold jewellery in the last 12 months are aware that hallmarked articles must carry a six-digit alphanumeric code.

73% of consumers surveyed say that mandatory hallmarking has increased their trust in the gold buying process

Many women can be heard narrating how when they went to sell or exchange old gold jewellery, they were informed by the jeweller that the product was not 22 carat gold but of much lower quality. The survey next asked consumers who have bought gold in recent times, “With hallmarking becoming mandatory, has your trust in the gold buying process increased?” 73% out of 16,004 who responded to the question stated “yes” while 22% of respondents stated “no” and 5% of respondents did not give a clear answer. To sum up, 73% of consumers surveyed say that mandatory hallmarking has increased their trust in the gold buying process.

In summary, as people invest in gold, there is rising awareness about the need to confirm the quality of the product being bought. Thus, 65% of consumers surveyed who bought jewellery in the last 12 months confirmed that it was hallmarked while 11% of respondents stated that it wasn’t. Unfortunately, 24% did not give a clear answer because either they did not check, or they are not aware of the need to do so. The survey revealed that only 18% of consumers surveyed who bought gold jewellery in the last 12 months are aware that hallmarked articles must carry a six-digit alphanumeric code, which shows that there is need to create greater awareness about what advantage buying hallmarked products offers. As 73% of consumers surveyed shared, mandatory hallmarking has increased their trust in the gold buying process. The government needs to ensure that all the jewellers across the country comply with hallmarking requirements and are subject to audits and enforcement action if found violating the rules.

Survey Demographics

The survey received over 62,000 responses from consumers located in 336 districts of India. 61% respondents were men while 39% respondents were women. 45% of respondents were from tier 1, 27% from tier 2 and 28% respondents were from tier 3, 4, 5 and rural districts. The survey was conducted via LocalCircles platform, and all participants were validated citizens who had to be registered with LocalCircles to participate in this survey.