(Adds quotes, details)
By Nigam Prusty
NEW DELHI Jan 4 (Reuters) – India has made
hallmarking gold jewellery mandatory, a senior government
minister said on Wednesday, a move that could boost demand in
the world’s biggest gold market by taking care of quality
worries.
Bombay Bullion Association President Prithviraj Kothari
welcomed the move, saying the government now needed to quickly
build more hallmarking centres to keep pace with demand.
“Gold prices are high. Customers paying a hefty price need
to be assured of quality. It is good move for the industry,”
Kothari said.
“Hallmarking can boost investment demand in jewellery form.
Currently purity concerns deter many consumers from buying
jewellery.”
Traders also hope quality assurance would also lead to
higher jewellery exports.
The move also prompted a call for similar measures on silver
jewellery.
Hallmarking silver products is not yet mandatory in India,
where jewellery quality is sometimes an issue, mainly with small
jewellers, and customers face problems during redemption.
“Like gold, the government should make hallmarking
compulsory in silver. It is a big market. Many people invest
without purity guidance,” Kothari said.
Gold imports by India plunged 56 percent to 125 tonnes in
the fourth quarter, cutting full-year imports by 8.4 percent as
record high prices and high interest rates hit demand.
(Additional reporting by Rajendra Jadhav in MUMBAI; Editing by
Krittivas Mukherjee)
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