New dawn in gold jewellery: Govt allows hallmarking of 9 carat gold

Kolkata: The price of 24 carat gold on July 21, 2025: Rs 98,791 per 10 gms. Price of 24 carat gold in July 2025: Rs 47,460-52,900 per 10 gms. While this is the price of pure (or 24 carat) gold, the price of 22 carat gold -- the grade used to make ornaments -- had a similar surge. Add to this a 3%b GST. This data from IBJA (India Bullion and Jewellers Association) adequately demonstrate why it has become extremely difficult for the common Indian to buy gold over the past few years. In a land where gold has a lot of cultural and traditional significance, it is quite difficult for the people to live with such high gold prices.

Against this backdrop, the government has breathed new life in the situation with the approval for hallmarking of 9 carat gold. It means the jewellery industry can henceforth make ornaments out of 9 carat gold which will be light on the pocket for the customer. Hallmarking certifies the purity of gold and acts as a mark of assurance for the customer and is important for building trust among potential customers. Ornaments using 9-carat gold can now be offered to the people, said jewelers. So far the lowest carat allowed was 14 carats.

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The development comes as a relief to the jewellery industry that suffered a sharp dip of 60% by volume of gold sales in June 2025. The relevant notification was issued by the Union ministry of consumer affairs. So far 24, 23, 22, 20, 18 and 14 carats of gold were allowed. “We had been urging the government to introduce hallmarking of 9 karat gold for over a year. The government’s decision will spur movement of gold in the rural areas where the budget for gold jewellery purchase is much lower than urban," Surendra Mehta, national secretary of the India Bullion & Jewellers Association was quoted in the media as saying.

According to IBJA rates, the cost (morning price) of 10 gms of gold 585 on July 12 2025 was Rs 57,793. By the way, 585 gold is equivalent to 14 karat gold. Therefore, the cost of 9 carat gold will be significantly cheaper than this price and, according to reports, it could be in the range of Rs 37,000. Even with a 3% GST, the cost will be a far cheaper than the 22 carat variety.

Incidentally, the busy gold season is from the festive season in September-October to the winter, thanks to the marriage season. "The decision of the government comes well ahead of the busy season and will allow us to hallmark 9 carat jewellery. Some jewelers have already achieved design standards to satisfaction with 9 carat gold," said a Kolkata-based jeweler. It will again attract young consumers to gold jewellery, he thinks. It could take about a month or more to put formalities in place for BIS to initiate hallmarking of 9 carat gold.