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Tuesday, 26 February, 2002, 12:49 GMT
India's gold jewellery rip-off
Couples sit their marriages in Amritsar, India
Not all weddings have been 22-carat
Most gold jewellery advertised in India as 22-carat is of a lesser quality, a survey by the Bureau of Indian Standards (BIS) has revealed.

The BIS found over 80% of the shops surveyed were passing off anything between 13.5 and 18 carats as 22-carat gold.


At present there are 300 jewellers who have gone in for certification, a very small percentage, but we are expecting as consumers are becoming aware they'll start asking for it and jewellers will be compelled to come for certification

DR Kohli
BIS
Gold jewellery is the most common gift at weddings and is part of the bride's dowry, especially in rural India, where parents believe the metal will give daughters some financial security.

Assistant Director General of the BIS, DR Kohli, told the BBC's World Business Report that jewellers can rip off consumers because hallmarks were only introduced for the first time last year.

"We are now asking people to buy hallmarked jewellery only because then they can be sure of the quality they are buying," he said.

"At present there are 300 jewellers who have gone in for certification, a very small percentage, but we are expecting as consumers are becoming aware they'll start asking for it and jewellers will be compelled to come for certification."

India's gold standard

India is the world's largest market for gold, consuming 855 tonnes a year, 95% of which is used for jewellery.

The demand for gold rises during the wedding season - from December to May - apart from a one-month break from mid-December.

The BIS tested gold jewellery sold in Calcutta, Bombay, Delhi, Bangalore, Madras, Ahmedabad, Hyderabad and Jaipur.

Using a sample of fifteen shops in each city, the BIS found only 14 of the 120 sold gold as advertised.

The survey's results have reportedly slowed gold sales.

Demand fell by nearly 20% in the fourth quarter of 2001 to 185.1 tonnes.

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News image DR Kohli, Bureau of Indian Standards
"We are now asking people to buy hallmarked jewellery only"
See also:

07 Feb 02 | Business
Gold prices hit two-year high
03 Aug 01 | Business
Gold teeth are a gold mine
27 Apr 01 | Business
Has gold lost its sparkle?
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