How Will India's Ban On Sale Of Gold Without 6-digit Hallmark Affect Buyers In The Middle East?

The new regulations regarding the hallmarking of gold jewellery and artefacts in India could indirectly benefit the gold industry in the Middle East by increasing the demand for high-quality, certified gold. Industry experts suggest that this new government rule may make gold prices in the region relatively more attractive for customers.

According to the recent statement from India's Ministry of Consumer Affairs, Food and Public Distribution, from April 1, 2023, only gold jewellery and artefacts with a six-digit alphanumeric HUID (a unique number) shall be permitted.

Industry players confirm that the hallmarking change will have no impact on gold brought into the UAE or on travellers bound for India.

The new hallmarking rules in India may result in a shift in demand towards gold that is certified for purity and authenticity, which could benefit the Middle East's gold market as it has a reputation for offering high-quality gold that meets international standards.

However, the overall impact may depend on various factors such as global gold prices, exchange rates, and consumer preferences. The new hallmarking rules in India may also lead to an increase in the cost of gold, as jewellers may have to invest in new machinery and processes to comply with the standards. This could result in a marginal increase in the cost of gold articles in India, which could make gold prices in the Middle East relatively more attractive for customers.

The Middle East is a major hub for gold trade and jewellery making, and it caters to customers from various parts of the world, including India. The new hallmarking rules in India may have an indirect impact on the global gold market, including the Middle East, as any change in regulations or demand in one of the largest consumers of gold in the world can have a ripple effect.

Although jewellers were given a year and nine months to clear the stock of articles with four marks, the simultaneous sale of two types of hallmarked jewellery by the jewellers was creating confusion in the mind of the common consumer, according to the Ministry statement.

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