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Hallmarking will guarantee the purity or fineness of the precious metal.
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Gold hallmarking is a purity certification of the precious metal and is voluntary in nature at present.
India Bullion and Jewellers Association said, self-certification of coins by refineries contravenes the basic purpose of a certifying agency.
The government's move to make hallmarking for gold mandatory from January 1, 2008 has got into bottlenecks thanks to lukewarm response from jewelers across the country.
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Here is all you need to know about hallmarking of gold.
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The trigger for international gold prices rising to $3,000 per ounce was Germany's upcoming heavy government borrowing.
The Bureau of Indian Standards, the apex body involved in developing technical standards and product certification, had introduced a gold hallmarking scheme in 2000 on a voluntary basis. The federation is protesting against the licensing procedure in the proposed Hallmarking Act and the infrastructure for the practical implementation of the act is inadequate.
Lack of security provisions coupled with inadequate infrastructure and lukewarm response from jewellers have put the government decision of making hallmarking mandatory for gold from January 1, 2008 into uncertainties.
The hallmarking of gold, which is voluntary in nature at present, is a purity certification of the precious metal.
The government on Thursday said nearly 7,000 jewellers have been granted hallmark licences after the quality standards, or hallmarking, for gold were launched in 2001.
The government would make hallmarking of gold jewellery mandatory from 2008 and will soon put in place the necessary infrastructure required for the purpose.
'It is important India to stay focussed on its primary national objectives: Combating terrorism; not losing sight of other security and strategic concerns (on the Sino-Indian front for instance); ensuring a strong economy and registering growth which includes improving the lot of common people; and finally making certain that the social fabric remains intact and harmony among people is not jeopardised, at least any further,' asserts Nilanjan Mukhopadhyay.
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BIS proposes compulsory registration for selling hallmarked jewellery. This will kill business of online sales as BIS registration is given only to physical premises.
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In the first phase the yellow metal sold in four metro-Delhi Mumbai Kolkata and Chennai would compulsorily have hallmarking, assuring the purity, while the rest of the country would have to implement the norms in the next few months.India consumes on an average 800 tonnes of gold each year.
