JB Insights
WGC releases ‘India Gold Market – Reform and growth’
The World Gold Council (WGC) has published a new report titled ‘India Gold Market – Reform and growth’. The report explores the key factors that shape India’s gold demand and supply, as well as the challenges and opportunities for the future. The new report covers various aspects of India’s gold market, such as: The drivers of Indian gold demand, jewellery demand and trade, jewellery market structure, gold investment market and financialisation, bullion trade, gold refining and recycling, and gold mining in India.
In the report foreword, Juan Carlos Artigas, Global Head of Research, World Gold Council, said: “In 2017 we produced “India’s Gold Market – evolution and innovation’. A lot has changed since that report was published. This compendium of updated reports delves deeper into key factors that underpin India’s position as the second largest gold consumer in the world: it studies the drivers of gold demand and the perception of consumers; it examines the new investment landscape: and it considers the complex issue of gold supply.
“Few of the global events that have rocked societal and geopolitical stability could have been imagined when our 2017 report was published. That India has had to adapt is not surprising, but the rate at which change is happening in the country is, arguably, unprecedented.
“Despite – or perhaps because of – macroeconomic uncertainties, India’s population resolutely turns to gold. Weddings and festivals are key drivers of gold demand and the country is one of the world’s largest bar and coin markets. There is no doubt that gold retains prominence in the social and financial life of many Indians, both urban and rural.
“The years ahead will present challenges. But rather than thinking them onerous, we believe there is tremendous opportunity for gold. Regulation of India’s jewellery industry has already made huge strides in building consumer trusts. If new export markets can be developed, the current fragile platform – 90% of jewellery exports go to just five countries – will be diluted. More accessible banking offers a possibility to reach investors who have long understood gold’s safe-haven qualities but now find themselves negotiating a plethora of choice. And in the longer term, the Gold Monetisation Scheme, proposed legislative changes in the mining industry, and resolution of recycling traceability issues may reduce India’s reliance on imported gold.
“As we look ahead with optimism, the insights in this report will help us ensure that gold retains or even increases its relevance to India’s economy – generating further employment and continuing to play its roles as an adornment and an effective portfolio diversifier and hedge against inflation
JB Insights
The Silver Shift: India Navigates A Calibrated Transition To Mandatory Silver Hallmarking
Unlike The Mature Gold Compliance Culture, Silver Represents A Fragmented Landscape, Requiring A Highly Nuanced Regulatory Strategy.
India’s silver industry is undergoing a steady transformation toward a formalised and traceable ecosystem. Driven by the Bureau of Indian Standards (BIS), the sector is transitioning toward mandatory silver hallmarking via a calibrated approach that balances regulatory goals with market realities. Unlike the mature gold compliance culture, silver represents a fragmented landscape, requiring a highly nuanced regulatory strategy.
The Scale of Adoption
The shift toward formal quality assurance is rapidly accelerating:
- Infrastructure: India now hosts nearly 2.22 lakh BIS-registered jewellers (with 23,000 registered for silver) supported by 286 dedicated Assaying and Hallmarking Centres (AHCs).
- Volume: During FY 2025–26, nearly 59.31 lakh silver articles were hallmarked.
- Traceability: Over 44 lakh silver pieces feature a six-digit Hallmark Unique Identification (HUID) code, bolstered by digital upgrades like automatic weight recording and photograph capture.
The Overlooked Heavyweights: Silverware and Temple Artefacts
While jewelry often dominates the conversation, industry experts emphasizes that silverware and religious artefacts represent a massive portion of India’s silver imports by tonnage, yet remain highly underrepresented in policy debates.
Despite the millions of pieces being hallmarked annually, thousands of tonnes of silver circulate uncertified in high-value categories:
- Market Diversity: Items like puja articles, temple silver, giftware, home décor, and corporate gifts are widely assumed by consumers to be of high purity, but fineness tests frequently reveal alarming variations.
- The Sensitivity of Testing: Large or highly intricate religious pieces—such as jhulas (cradles), maces, chhatris (canopies), and heavily ornamented temple decor—present unique hurdles. Applying destructive sampling methods to these items is not only logistically complex but emotionally and culturally sensitive.
To address this, experts advocates for an incremental rollout. This involves prioritizing easily testable silverware categories first, alongside establishing clear, practical sampling rules for oversized items. Furthermore, they emphasize the need for transparent retail pricing—where metal value, making charges, and wastage are clearly broken out—allowing consumers and temple trusts to make informed decisions and avoid under-purity controversies.
Standards and Operational Hurdles
At the core of this transition is IS 2112:2025, the updated technical standard governing silver purity grades (ranging from 800 to 999.9 purity). The standard mandates safer manufacturing practices, prohibiting cadmium and lead in solders while utilizing advanced XRF analysis for verification.
However, standardisation must be balanced so it does not suppress design innovation. Stakeholders note that popular oxidized and mixed-material pieces require highly tailored hallmarking approaches, alongside resolving existing bottlenecks like hallmarking capacity constraints, hallmark wear, and delicate traditional styles like bandhel and filigree.
A Consultative Future
Recognizing these friction points, BIS is avoiding abrupt disruption. Through national consultations and the BIS Care App, the regulator is actively gathering industry feedback to design a phased rollout. By factoring in specific exemptions based on weight or technical complexity, the framework aims to protect traditional craftsmanship and design innovation while establishing standards, traceability, and trust as the foundation for Indian silver’s global competitiveness.
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