The government has mandated a Hallmark Unique Identification (HUID) number, a six-digit alphanumeric code consisting of numbers and letters, for gold jewellery and other items from April 1, 2023.
The government has taken several measures in the past to improve the quality of gold jewellery sold across the country. Experts point out that the end consumers in India will get a standard asset for their money invested, ensuring higher resale value. Such a move is also expected to help bridge the trust deficit between buyers and sellers over the quality of gold.
“Indian jewellery industry creates a large number of jobs, and a robust policy is critical for steady growth. India needs a set standard for products across the spectrum to be recognised globally for quality. The hallmarking will also ensure a uniform standard of gold quality across India, essential for a country that is among the top gold markets in the world,” remarked Collin Shah, MD, Kama Jewelry.
Experts such as C. Vinod Hayagriv, managing director of the 150-year-old Bengaluru-based C. Krishniah Chetty Group of Jewellers said a hallmark is always healthy and creates a purity standardisation across the country. “The HUID is a unique identification number for every piece of jewellery that is sold in this country. Hence, it is a good way to track and audit especially for the government to control unaccounted transactions. It also improves the quality of the product for the consumer. The consumer has less to be worried about the quality of their piece,” Hayagriv told THE WEEK.
There were apprehensions as to whether old jewellery which people possess will need to undergo some changes. Hayagriv explained that there is no law as such as far as consumers are concerned and all the consumers are free to hold their jewellery. “Whether the jewellery is one year old or a hundred years old consumers may continue to enjoy their jewellery and will not need to sell them or convert them in any way. However, if they wish to exchange it or sell, it is perfectly legal, and all jewelers in the country will accept old jewellery to be sold, converted or exchanged. There is nothing to stop the consumer from exchanging or remaking old jewellery, however old or new it is,” he explained.
Hayagriv said there are also no other rules that restrict the business or holding of jewellery gold or diamonds or silver. “As of now, it is mandatory to have a HUID on gold jewellery. Over a period of time, there may be a rule for also mandating hallmarking of silver. This I believe is good for a country like India because it improves the overall standard of gems and jewellery.”