Kochi: Do you have to sell all the old gold without the hallmarking stamp within 10 days? Can such gold not be sold after January 15? And even if it be sold, will it fetch the prevailing market price? There is a lot of misleading propaganda and confusion about hallmarking.
A law has been passed in Parliament to make hallmarking mandatory in the country to ensure quality in the jewellery trade. Many believe that the deadline given for enacting the law that makes hallmarking mandatory ends on January 15, after which old and traditional gold will become worthless jewellery if not sold by then.
Let us examine the reality.
Time until June 15
The central government has given time till June 2021 for the enactment of the Act that makes hallmarking mandatory. The deadline was extended in view of the COVID pandemic. Earlier, the last date was January 15, 2021.
No need of hallmarking for selling gold
The hallmarking act will apply only on only gold sold by traders to consumers. Hallmarking is not required to sell or exchange gold jewellery, coins or other items in possession of customers.
Gold without hallmark can be pledged
When gold is pledged for financial purposes, it will not matter whether the jewellery is hallmarked or not. This means that the law does not apply to gold loans either.
What if traders insist on hallmarking after Jan 15?
If any gold trader says that gold that is not hallmarked cannot be exchanged or sold after January 15, then consumers can take legal action against them. The central government’s Act makes it clear that hallmarking is not mandatory for gold being accepted from consumers.
What will happen to gold that is not hallmarked?
The gold that the merchants buy from the customers is melted down, converted into certain carats, hallmarked and then again sold to customers.
After June 1, 2021
Jewellers cannot sell jewellery without a hallmarking stamp. But consumers can sell or exchange gold without hallmarking at any time.
Will the price of jewellery go down if they are not hallmarked?
Customers will get the current market price depending on the purity of gold.
What can be bought and sold?
The central government allows consumers to sell three-carat gold jewellery. Jewellers can only sell jewellery that are of 14, 18 and 22 carats. Jewellery made in any of these carats has to be hallmarked. As per the new notification, 21 carat gold cannot be sold by jewellers. But jewellers can buy 21-carat jewellery from customers. The gold brought in from many foreign countries is of 21-carat purity.