Festive gold buyers in the metros beware. For, this season there is all the more reason to ascertain the quality of gold that one is buying from the neighbourhood jeweller. And what calls for such caution. With hallmarking of gold becoming mandatory from January in the four metros, industry watchers feel that many jewellers could offload stocks with shortage of purity.
?There is every reason to be more careful now. While jewellers have been asking for an extension in implementation of mandatory hallmarking, they in all certainty will try to sell all the stock which is below the proclaimed level of purity,? said one such analyst.
From January 1, 2008, the government has decided to make it mandatory for gold to be hallmarked by the Bureau of Indian Standards (BIS). Initially, the move would be implemented in Delhi, Kolkata, Mumbai and Chennai and will be spread across the country in phases.
When contacted, Additional Director General of BIS, Y P Singh said, ?We are aware of the shortage of purity. But the scheme will only be launched in January. Besides, there are certified jewellers also. So far the hallmarking scheme is voluntary, however, we will see what can be done.?
Almost 40% of India?s retail gold purchases are made in the festive season of October-November. At present sale volumes and the expected rush to sell the stocks, the eyewash on purity shortage could be worth Rs 300 crore in the metros.
India consumes on an average 800 tonnes of gold each year. With a BIS survey finding almost 90% samples from unlicensed jewellers to be short of purity, with impurity in the yellow metal as high as 44.66% in some cases, and an average shortage of 13.5%, it translates to short charging from the customer to the tune of Rs 8,000 crore.
?Ultimately it the consumer who is at a loss as he does not have any method to ascertain the purity of the gold he buys from a non-licensed jeweller. BIS Hallmark (916 for 22 carat gold purity) provides a third party assurance to the customer and protection against any victimisation on account of irregular gold quality or purity,? said a scientist at BIS.