World Gold Council (WGC) favours mandatory hallmarking of gold jewellery as the certification would guarantee quality, said Philip Olden, MD and chief marketing officer of the Council.
Olden was speaking on the sidelines of the India International Jewellery Show 2008, the five-day seminar-cum-exhibition organised by the Gems & Jewellery Export Promotion Council (GJEPC).
The Union government had earlier proposed to make hallmarking mandatory beginning 2008, but it was postponed on concerns of traditional jewellers in the villages. When the government had tried to impose hallmarking in at least the four major cities of Mumbai, Delhi, Kolkata and Chennai last year, the move had to be put on hold due to the lack of adequate infrastructure.
“The Indian government needs to improve infrastructure with adequate hallmarking machines,” Olden said. Security of stocks is another threat the government has to find a solution for, he added.
Though hallmarking has been strictly adopted by the organised sector retail jewellery-makers, retailers with small investments are yet to adopt the practice. Meanwhile, exchange-traded funds (ETFs) have created new worldwide demand for gold, both in paper as well as physical form, he said.
Globally, ETF witnessed a total trade of $20 billion of which US led the roost followed by Hong Kong and Japan, Olden said, without divulging regionwise and countrywise details.
About prices, Olden said that gold is unlikely to fall below the cost of production level, which is hovering around $500 an ounce.