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New government regulations require country’s gold retailers to meet April 1 deadline
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From next month, India will ban the sale of gold jewelery and handicrafts that are not marked with a six-digit code, potentially boosting demand for high-quality certified gold, indirectly benefiting the Dubai gold and jewelery market.
Industry experts also highlighted that this new government regulation by the Indian government could make gold prices in the emirate more attractive to customers.
A recent statement from the Ministry of Consumer Affairs, Food and Public Distribution made it clear that from April 1, 2023, only gold jewelry and gold crafts marked with a six-digit alphanumeric HUID, a unique identification number, will be allowed to be sold.
The landmark change also has no impact on gold brought into the UAE or travelers to India, industry sources said, alleviating the concerns of several expatriates living in the country.
Chirag Vora, director of Bafleh Jewelers, said: “India’s new gold marking rules may not have an immediate impact on the Dubai gold and jewelry market as it is a separate market with its own set of regulations and standards. One of the world’s largest gold consumers, any change in regulations or demand could have an indirect impact on the global gold market, including Dubai.”
Dubai is a major hub for gold trading and jewelery manufacturing, serving clients from all over the world including India.
He explained: “The Indian market is known for its demand for high-quality gold and the new marking rules could lead to a shift in demand towards gold that is certified for purity and authenticity. Certified high quality gold.”
“Furthermore, new marking rules in India may also lead to an increase in the cost of gold as jewelers may have to invest in new machinery and processes to comply with the standards. more attractive. However, the overall impact may depend on various factors such as global gold prices, exchange rates and consumer preferences,” Vora emphasized.
The decision on the new requirements is said to have been taken after a Bureau of Indian Standards (BIS) review meeting on March 3, 2023 chaired by Union Cabinet Minister Piyush Goyal.
Vinay Jethwani, partner at Meena Jewelers, also expressed similar thoughts, saying: “The six-figure mark that will be implemented in India will not affect gold sales in this market because consumers are already getting the best gold. And the main factor for tourists to buy gold from here, but gold is cheaper, there are other aspects like beautiful design and wide range that make buying gold attractive.In this market, customers can not only be assured of the quality of gold, You can also choose from designs from around the world.”
Until now, jewelers were allowed to sell old logo jewelry with four markings but no HUID as well as six-digit HUID markings.
Jewelers apparently have one year and nine months to clear their inventory of items with four marks.
But according to a ministry statement, the simultaneous sale of the two types of jewelery with the logo by the jeweler has created confusion in the minds of ordinary consumers.
Anil Dhanak, MD, Kanz Jewels cast doubt on the new decision, saying, “The newly introduced Gold Mark is being implemented arbitrarily. It is very impractical and almost impossible for retailers to implement it and it will certainly affect retail sales in India. Because of this, customers can be assured of the purity of the gold. I feel this affects people involved in the transaction. There are limited number of iconic centers across India and I doubt they will be able to assess the purity in a short period of time. I feel it may take some time to get Let the iconic market go smoothly because supply exceeds demand.”
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