India has recently announced that starting from April 1, 2023, only gold jewellery and artefacts that have been hallmarked with a six-digit alphanumeric HUID (a unique number) will be permitted. This new government regulation aims to ensure the authenticity and purity of gold being sold in the country. However, this move has raised concerns among consumers and industry players alike, including the impact it may have on the Dubai gold and jewellery market.
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Impact on Dubai Gold and Jewellery Market
While the new hallmarking rules in India may not have a direct impact on the Dubai gold and jewellery market, industry experts believe that it may indirectly benefit the emirate’s gold trade. Chirag Vora, director of Bafleh Jewellers, suggests that the new regulations may increase demand for high-quality certified gold, making Dubai’s reputation for offering certified international standard gold more attractive to customers.
Vinay Jethwani, Partner at Meena Jewellers, further states that the new regulation will not affect gold sales in Dubai since consumers are already assured of gold quality, and there are other aspects such as cheaper prices and a wide range of designs that make gold purchases attractive in the emirate.
Concerns of Industry Players
Despite the aim of the new regulation to ensure the authenticity and purity of gold being sold in India, some industry players have raised concerns about the practicality of implementing the new hallmarking system. Anil Dhanak, MD of Kanz Jewels, is sceptical about the limited number of hallmark centres across India, which may not be able to assess the purity of gold within a short time. This could affect retail sales in India, as the demand for hallmarking outweighs the supply.
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Final Thoughts
India’s new regulation on gold hallmarking may have indirect effects on the Dubai gold and jewellery market, making it more attractive to customers looking for high-quality certified gold. While concerns about the practicality of implementing the new system have been raised, the government aims to ensure the authenticity and purity of gold being sold in the country, ultimately benefiting consumers in the long run.
