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Tuesday, 30th May 2006 (2175 views)

The Indian government is looking to establish an authority that would work to reduce the level of counterfeit gold being produced in India.

The Working Group on Counterfeit, Fake, Spurious and Contraband Products, established by the government's Department of Consumer Affairs, has recommended that an independent body be set up and given powers to protect the consumer.

A recent Bureau of Indian Standards (BIS) study found that almost 90 per cent of gold jewellery tested was much less pure than was claimed, highlighting the problem in the country.

BIS director general Y P Singh said that "gold consumers are being taken for a ride by unscrupulous jewellers" in India, Resource Investor reports, largely because of an absence of hallmarking.

The Working Group's new report recommends that the government should take on the problem of counterfeit jewellery through the action of enforcement agencies and the use of modern technology. It also suggests that industry bodies should set up "Better Business Bureaus" to guarantee the quality of products.

Further, the BIS is to introduce a new system of hallmarking regulation, with the practice of hallmarking to become mandatory from the start of 2008.

Such moves will ensure that the consumer is able to buy purer, more trustworthy jewellery and will also have the knock-on effect of attracting more people to the gold markets.

 

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