High Gold Prices? Government Approves Hallmarking for 9 Karat Gold for Budget Buyers

The Ministry of Consumer Affairs has notified that 9 karat gold will now be eligible for hallmarking by the Bureau of Indian Standards (BIS). Until now, only 24K, 23K, 22K, 20K, 18K, and 14K gold jewellery could be hallmarked in India. 

This regulatory update is seen as a strategic step to make gold jewellery more accessible to budget-conscious buyers.

Why 9 Karat Gold Jewellery?

The move comes amid a sharp slump in gold jewellery sales, which reportedly dropped by 60% in June 2025 the most significant monthly fall since the COVID-19 crisis. Industry insiders believe hallmarking 9K gold will help cater to rural consumers and younger urban buyers with limited budgets.

As per news reports, this move could revive demand in price-sensitive markets. Urban millennials and Gen Z buyers are showing growing interest in affordable, trendy gold jewellery.

How Affordable Is 9 Karat Gold?

As of Friday, 9 karat gold was estimated to cost around ₹37,000 per 10 grams, lower than the ₹97,828 per 10 grams price for 24 karat gold. After applying the 3% Goods and Services Tax (GST), 9 karat gold retail prices reach approximately ₹38,110 per 10 grams less than half the price of higher purity variants.

With festival season approaching from Rakshabandhan through Diwali and then the winter wedding months jewellers believe 9 karat jewellery could become a popular choice.

Gold Jewellers and Manufacturers Welcome the Decision

The announcement is expected to provide relief to gold jewellery manufacturers, who have been under pressure from rising raw material costs. As per mews reports, many jewellery makers have already begun shifting production towards lower karat options like 14K and now 9K gold, which require less capital to produce.

Implementation Timeline

The BIS is expected to take around a month to set up the infrastructure needed at hallmarking centers across the country to include 9 karat gold. Once implemented, jewellers will be able to offer certified, lower-karat jewellery nationwide.

Read More: From Bull to Bear: What Could Trigger a Gold Price Reversal in 2025?

Conclusion

Hallmarking of 9 karat gold jewellery is a timely and consumer-friendly step that aims to make gold ownership more accessible without compromising trust or quality. As gold prices continue to hover near record highs, this move could reshape purchasing trends, particularly among budget buyers and rural consumers.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.