Hallmarked Gold vs KDM vs 916 Gold: Key Differences

• Hallmarked gold is certified by BIS, ensuring purity and authenticity, making it a safer choice for buyers and investors.
• KDM gold, soldered using cadmium, poses health hazards and is now replaced by BIS-certified gold due to safety concerns.
• 916 gold refers to 22-karat gold (91.6% purity) and is commonly used in jewellery due to its strength and durability.

When buying gold jewellery, you often hear terms like 916 gold, KDM, and hallmarked gold. But what do they mean, why do prices vary, and how do you ensure you are making the right choice?
This guide breaks down the key differences to help you buy gold with confidence.

Here is a quick overview of what different types of gold mean:

1. Hallmark Gold

Hallmark Gold refers to gold jewellery or bullion certified by an authorised body for purity and fineness. In India, the Bureau of Indian Standards (BIS) is responsible for hallmarking gold under the BIS Hallmarking Scheme. This certification ensures that the gold meets the prescribed purity standards, protecting consumers from fraud.The hallmarking process involves several steps to certify the gold's purity:

Step 1

Jewellers submit their gold articles to a BIS-certified Assaying and Hallmarking Centre. A sample is taken for testing.

Step 2

The gold undergoes chemical and X-ray fluorescence (XRF) testing to determine its exact composition. If the gold meets the required standards (e.g., 22K, 18K, or 14K), it proceeds to the next step.

Step 3

Once approved, the jewellery is engraved with the BIS hallmark, which includes:

• Purity in carats (e.g., 22K916 for 22K gold)
• The Assaying & Hallmarking Centre’s mark
• The jeweller’s unique identification mark
• A six-digit alphanumeric Hallmark Unique Identification (HUID) number

Step 4

The jewellery is checked again before being returned to the jeweller for sale.Since June 2021, hallmarking has been mandatory in India for gold jewellery and artefacts, ensuring transparency and trust in gold purchases.

2. KDM

KDM is a type of gold alloy containing cadmium as a soldering material. It was widely used for making intricate gold jewellery. The term KDM comes from the cadmium soldering process, where a mix of 92% gold and 8% cadmium was used to join gold pieces together.KDM gold is no longer preferred due to health hazards. Cadmium is toxic and can cause respiratory and skin-related issues in artisans handling it. As a result, the BIS banned cadmium soldering, replacing it with hallmarked gold jewellery.

3. 916 Gold

916 gold signifies 22-karat gold, comprising 91.6% pure gold and 8.4% alloyed metals, such as silver, copper, or zinc, to enhance its strength and durability. The term "916" originates from the gold's purity in parts per thousand (i.e., 916/1000). It is widely used in jewellery due to its purity and strength balance.To check whether the ornament is 916 Gold, you can use the following tips:

• BIS certifies gold with a hallmark that includes:

• Use a magnifying glass to check. A genuine BIS hallmark is clear and precisely engraved. Fake marks may appear blurry or uneven.
• You can ask the jeweller to use nitric acid to check gold's purity. If the gold reacts, it may contain impurities.

Hallmarked vs KDM vs 916 Gold Here are the key distinctions between various types of gold:

Lenders prefer hallmarked gold or 916 gold (22-karat) when applying for a gold loan since these have verified purity. Here are some tips to get hassle-free gold loan approval:

Higher LTV

RBI allows lenders to provide loans up to 75% of the gold’s value. Choose lenders offering the highest LTV to maximise your loan amount.

Interest & Fees

Gold loan interest rates vary from 7% to 20% annually, depending on the lender. Also, check for hidden processing fees, valuation charges, and foreclosure penalties.

Loan Tenure

Gold loans typically have tenures of 3 to 36 months. A shorter tenure reduces total interest costs, helping you repay faster without excessive financial burden.

Repayment Options

Some lenders allow monthly EMIs, while others offer bullet repayments (pay monthly interest and principal payments at the end). Choose a repayment method that fits your financial capacity.

Non-Repayment Risk

If you cannot repay on time, lenders can auction your gold. Understand the lender’s policy on non-repayment and grace periods to avoid losing your jewellery.

Borrow Wisely

Borrow only what you need and can repay easily. Taking a high loan amount increases the risk of default, leading to the potential loss of your pledged gold.

Gold Security

Confirm whether the lender stores gold in a secure vault with insurance coverage. Reputable banks and NBFCs ensure safety from theft or damage, giving you peace of mind.

When buying gold, understanding these terms is essential for making a wise investment. Hallmarked gold ensures authenticity and purity, offering the safest and most reliable choice. 916 gold (22K) balances durability and purity, making it ideal for jewellery. KDM gold, once popular for intricate designs, has been phased out due to health risks.If you purchase gold for long-term value or a loan, opt for BIS-hallmarked physical gold for guaranteed purity. You can also find the same quality and purity in digital gold , which offers a convenient and secure way to invest without the hassle of storage or purity concerns.

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