Eyeing gold but staring at price? Why 9 carat jewellery hallmarking could be the good news you've been waiting for

If the buyer in you has been eyeing gold but staring at the precious commodity's soaring prices, there is some good news for you. The Bureau of Indian Standards (BIS)--the national body responsible for formulating standards for goods and services in the country--has included 9 carat purity (375 parts per thousand) gold under the list of purities required to be mandatorily hallmarked when made into jewellery.

Currently, only six broad categories of purities are hallmarked: 14 carat, 18 carat, 20 carat, 22 carat, 23 carat and 24 carat (KF and KS).

With the addition of 9 carat, the 375 parts per thousand purity is now added to the list.

The move comes at a time when gold prices are hovering close to record high levels on the back of a mix of factors including dollar weakness, global uncertainties surrounding trade tariffs, geopolitical tensions, inflation fears and rising consumer demand. Higher prices make it difficult for investors to take fresh positions in precious metals such as gold.

Here’s what experts that Zee Business spoke with say about the inclusion of 9 carat into the list of mandatory gold jewellery hallmarking:

9 carat gold jewellery hallmarking gets a warm welcome from industry

Welcoming the much-awaited development for the gold industry, Rajesh Rokade, Chairman of GJC, said: “Gold rates have increased about 2.5 times in the past six years. This is what has led to pocket-friendly jewellery becoming essential now. Wedding jewellery has also started to come in 18 carat purity instead of the earlier 20 carat.”

Earlier, consumers used to be more specific and conscious about aspects such as colour retention post-mixing with alloys, he elaborated, adding: “Even now, there are plenty of colour options available such as rose gold, copper gold and white gold. GenZ often prefers unconventional shades like white gold and rose gold... At the end of the day, what matters to the consumer is transparency... Consumers should never be confused about purity.”

“This (development) is going to be a milestone in that regard,” he said.

What could be the applicable price for 9 carat gold jewellery?

At the purity of 37.5 per cent (375 fineness or parts per thousand), the 9 carat price should be around Rs 37,000–38,000 per 10 grams given the current rates.

“It is a great move... Affordability is a major factor at play for consumers now. For consumers looking to buy jewellery with diamonds, even 14 carat and 18 carat options were getting out of reach given the price surge. This is going to be a win-win situation for the industry and for the consumer. From a positive and optimistic perspective, one should see a boost in sales going forward,” said Suvankar Sen, Managing Director and CEO, Senco Gold.

“GenZ, millennials and corporate customers need new designs for fashion and everyday wear. 9 carat alternatives that are well within budget should naturally boost demand,” he added.

Has gold peaked out in July 2025?

“We don’t believe the current gold rally has ended,” said Harshal Barot, Senior Consultant, Metals Focus. “Gold may continue to rise to $3,800 an ounce levels and perhaps even $4,000 an ounce in the best-case scenario over the next 6–8 months before it starts to correct,” he said.

One may expect some direction and consolidation only after this period, he asserts.

What could cause gold prices to fall going forward?

According to Barot of Metals Focus, easing uncertainty around tariffs and cooling geopolitical tensions can hurt the current support enjoyed by the yellow metal globally.

“Since Russia’s invasion of Ukraine in 2022, gold has seen sustainable rallies... Any visible resolution in that regard should take away major support for gold rates and could be a major trigger,” he added.

Where can one expect gold to be in the near term?

“All the rally that was expected this year has already happened, given the year-to-date gain of around 28 per cent... One can expect gold to consolidate between Rs 95,000 and Rs 99,000–99,500 within the next one to one-and-a-half months,” said Dinesh Somani, Founder, Prointellitrade Services.

What has propped up gold prices in India in 2025?

As of July 2025, gold is quoting about 28 per cent higher for the year, topping the precious metal’s 26 per cent return in 2024.

Here’s a quick take on some of the key factors behind the surge in gold rates:

• Global uncertainties: Typically, financial uncertainty boosts the appeal of gold as a safety net
• Dollar weakness: A weaker greenback makes the yellow metal more attractive for investors holding other currencies
• Central bank buying: Rapid purchases prop up gold demand while signalling confidence in its safe-asset appeal
• Sticky inflation: Gold has been viewed as a value-preserving tool, a hedge against inflation
• Rupee weakness: Weakness in the domestic currency raises the import cost of gold
• Rising consumption: Strong festive- and wedding-related demand has maintained gold’s position as a prized possession among Indian consumers