Need of the hour: Hallmarking

The Indian government postponed the implementation of the Gold Hallmarking Act, which was scheduled to come into effect from 1 January 2008, due to apprehensions by jewelers, led by the All India Gems and Jewellery Trade Federation (GJF), officially representing about three lakh retailers across India. The hallmarking act would have made mandatory for all gold jewellery to be certified for purity at centers spread across the country.

According to GJF, licensing is the major issue which will hamper the growth of the jewelry industry. The BIS (Bureau of Indian Standards) licensing, which reminded jewellers of the ‘Gold Control Act’, is applicable only on the jewelry industry, echoing the times of the ‘Licensing Raj’. “We’ve seen the draconian effect of Gold Control Act, and we’re not ready for that experience again. The paperwork and procedure should be simple and transparent with the absence of taxation and rigidity in licensing system,” commented Atul Jain, director of AR Diamond Gem Grading Services. Some of the other objections raised included insufficient infrastructure and the precondition for a jeweler to have a license for selling hallmarked jewellery. Jain also mentioned that the license charges should be made affordable for the small jewelers, rather than catering to just the bigger players.

SL Palkar, regional coordinator, BIS-western region told JCK India, “Earlier the charges for licenses were Rs25,000 per year, but we are now charging the same amount for three years.” It was also necessary for BIS officials to visit the showroom prior to approval, but now the BIS requires jewelers to submit a photograph of the showroom with a declaration that they will not stock cadmium jewelry. “We issue licenses within two hours of the submission of required documents,” Palkar claimed.

Out of the 35 states and union territories in India, currently there are 106 hallmarking centres in 14 states, which have close to 5,000 licensee jewelers, according to the Indian Association of Hallmarking Centres (AIHC). An additional 12 states have more than 500 licensee jewelers, but no hallmarking centres. The remaining nine states and union territories have neither licensee jewelers nor hallmarking centres.

The four metropolitan cities of New Delhi, Kolkata, Mumbai and Chennai currently have 41 hallmarking centres. The AIHC is adding 17 to take this number up to 58 by the first week of January 2009. Industry experts say this is still a fraction of the estimated infrastructure requirement of 500 centres for the successful infrastructure implementation of compulsory hallmarking.

Remarking on the weak infrastructure issue Uday Kumar Vummidi, secretary, Gems and Jewellery India International Exhibition (GJIIE) commented, “Hallmarking will definitely facilitate the growth of the industry, but it should be made mandatory only with adequate arrangement of proper infrastructure. It should be convenient, comfortable and accessible to every jeweller.”

However, BIS deputy director general P Sengupta finds the demand for more centres baseless, as even most of the existing ones are underutilised. “Despite this, the government is providing huge financial incentives for new centres, offering subsidy of Rs1-1.5 crore on each centre.

According to Indian Association of Hallmarking Centres’ Secretary, James Jose, only around 10 percent of the 106 existing hallmarking centres are working at full capacity. “There are huge unutilised capacities in the hallmarking centres - the average capacity of a hallmarking centre is roughly 2,500 pieces or 35 kilograms per day, which works out to 10 tonnes per annum.” Thus, the 106 centres across the country can hallmark more than 1,000 tonnes of jewellery every year, versus the actual hallmarking happening of less than 200 tonnes.



India’s annual consumption of gold jewelry went up from an estimated 65 tonnes in 1982 to 620 tonnes in 2000. However, there was no hallmarking of jewelry done in this period. For the first time, a mere two tonnes of jewelry was hallmarked in 2001, when jewelry consumption touched 615 tonnes. By 2007, India hallmarked 180 tonnes of jewelry against a consumption of nearly 560 tonnes.

Anticipating mandatory hallmarking, which was to be implemented in January 2008, many new centres sprang up in small towns as well as in the metros, irrespective of the volume of jewelry that can be hallmarked in these places. Commenting on low capacity utilisation, Jose said: “For instance, though the existing volume of hallmarked jewelry in Mysore is not sufficient even for a single centre, it has four hallmarking centres. The same is applicable for Kollam in Kerala, where daily hallmarking volumes are hardly five percent of installed capacity. Of all the licensee jewelers, only around 25 percent go for 100 percent hallmarking.”



The act also calls for jewelr y below five grams to be hallmarked, though it will not have enough space to be stamped. Jewelers demanded exemption of such jewelry from the act. They believed “the onus of lower purity of hallmarked jewelry should lie on the hallmarking centres and not jewellers,” and are demanding this aspect be clearly stated in the amended act. Also, hallmarking done by manufacturers should be acceptable and need not be double-checked by the retailer.

Despite supporting the government’s stance on hallmarking, most jewellers want to see serious measures taken on the issues like certain kinds of jewellery, like meenakari, kundan and polki type handcrafted jewelry, being exempt from hallmarking. Speaking in favour of hallmarking, Tumal Jain, secretary, Delhi Jewellers Association said, “Hallmarking is always better for the trade. It is going to help to win consumer confidence.” But he also believed jewelry having less than five percent metal elements (which is worth Rs20 lakh, but comprises precious metals worth Rs5,000) should be exempted.”

Vivek Kala, president of Jaipur Jewellers Association agreed with Tumal Jain. “There should be a proper declaration of the clauses mentioned in the act. Jewelers like us who deal with colored stone or diamond-studded jewellery, need to certify the diamonds, emeralds, rubies and sapphires. The government should also take into account special cases like customised designs. If a customer goes for his choice of designer ring, the already hallmarked pieces will remain unsold.”

“Jewelers should be allowed to keep both certified and non-certified jeweller y. The customer is well educated; he has a clear idea of what he is buying. If the customer himself starts demanding hallmarked jewelry, jewelers will have to stock it,” Atul Jain said.

Interestingly, a 2006 government survey of 16 cities found that of 162 samples, more than 90 percent failed in terms of purity. This means a customer who bought gold jewelry labelled 22k could have in reality been cheated by being sold 18k jewelry.

Commenting on errors in karat declaration, BIS’ Sengupta commented: “We have found many such cases, where the customer is fooled by the jeweler. The jewelry is actually 22k; but the jeweller sells it as 24k jewellery, which in today’s scenario could cost an additional Rs1,200- 1,300.”

In 1998-99, World Gold Council (WGC) and the Reserve Bank of India (RBI) together introduced hallmarking in India on the back of the RBI Precious Metal Committee’s report stating the need of quality control in jewelry to safeguard the consumers’ rights. After the inception of the first hallmarking centre in April 2000, the committee conducted surveys in 2001 and 2006, and both times the findings were uninspiring. Also, as per a recent BIS survey around 87 percent of the gold jewelery sold in India is below the stated karatage level. All these reports were more than enough to force the government to make it compulsory for the jewelry industry to hallmarking the jewelry, officials explained.

The government is now reforming the act, the bill for which is pending in parliament, considering the issues raised by the jewelers. Representing jewelers’ optimism, GJF chairman, Ashok Minawala, told JCK India, “We showed loopholes in the bill, which would have acted as big hurdles in activation otherwise. The government has promised us that it is going to make amendments considering our demands.” The government has also assured the industry of a sixty-day-preparatory period before the act is finally implemented.

“Among the recent developments in the Hallmarking Act was the inclusion of a new karat introduced in the industry, namely the 17 karat (with a fineness 708), so that the items rejected on 18 karat fineness can also be put up for sale with a marking of lower karatage,” Jose said, adding: “Marking to next lower fineness or karatage is possible in 22 karat and 18 karat too, and jewelry below two grams and nine karat is exempt from hallmarking. The hallmarking technology too has improved as the centres can now hallmark up to 99.9 against 99.5 earlier.”

Kala believed hallmarking will work as a catalyst for jewelry trade, but should be a voluntary process. “Jewelers who stock hallmarked jewelry can promote themselves through extensive media campaigns. It will create awareness among consumers, which in turn will further push the demand for hallmarked jewellery. Those who will deny hallmarking will suffer losses and will have to opt for hallmarking. Therefore consumers’ education is the best means to implement hallmarking.”

An interesting point was raised by Gaurav Anand, owner of Indore-based Punjab Jewellers, who said that hallmarking should be implemented at the manufacturing level, so damages can be cleaned up before the jewelry reaches the retailer. “There is only one hallmarking centre in Indore and it is sufficient to cater to the needs of Indore jewelers.”

Though India is home to various types of handcrafted jewelry, exports are limited only to cut and polished diamonds. According to industry experts, mandatory hallmarking along with the Vienna Convention will create new avenues for jewelry export. “It will make Indian jewelry acceptable anywhere in the world without any further quality checks,” Jose said.


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International Gemstone Trends

With the emerging popularity of gemstones, many consumers who are beginning to form a part of the market for gemstones are looking for answers to various questions with regards to color, cut, price and jewelry styles that are fashionable and trendy.

The fact of the matter is that the gemstone industry is so large and varied that there are various international trends running in at the same time. Additionally, there are many people who tend to have different reasons for purchasing gemstones other than just fashion trends. Some buy gemstones due to superstitious beliefs and the mystical powers that some of the gemstones are believed to possess. The alexandrite, for example, is known to increase the intuitive powers of the wearer and is believed to help during times of crisis. The aquamarine brings forth youth and joy, the coral is effective during financial troubles, jade has healing powers, iolite opens the inner eye and increases wisdom, the garnet brings prosperity, cat’s eye helps in warding away bad fortune and much more. The popularity of certain gemstones is impacted significantly due to these beliefs. The blue sapphire is one such example where people believed that it can either be extremely positive for the wearer or extremely negative, causing accidents and threats to life in some cases. Since the preference for specific gemstones is based more on individual requirements as against a fashion trend, many of these gems have their own niche customers who require it for various purposes.

There are also people who prefer to choose their gemstones on the basis of the colors that they fancy. Given that the awareness of gemstones is increasing there is knowledge about the fact that there are various kinds of gemstones. Till a few years back, women thought and talked only about the diamond when gemstones were discussed. While the diamond has carved (no pun intended) an elite niche of itself, other precious gemstones like the ruby, emerald, garnets and more have moved in. With additional knowledge also came an understanding of the fact that each gemstone could be available in various colors and that each color has its own uniqueness. People therefore chose their gemstones based on their favorite colors and the dress for the occasion (especially for the not-so-expensive gemstones). From saturated shades of green to vibrant red, blue sapphires, dazzling yellow and even mauve, each one can have their pick from rubies, emeralds, sapphires, garnets, tourmalines, amethyst, tanzanite, corals and more.

In spite of the increasing popularity of gemstones, they are not readily available in all markets. And therefore the more adventurous and innovative gemstone wearers tend to buy what is available in the market. But the connoisseurs, experts and those who have been buying gemstones for some time tend to collect gemstones based on their uniqueness and rarity.
But internationally, gemstone trends and fashions tend to follow haute couture. When the release of fall winter collections brings forth dark earthy shades of brown as the trend for the season, experts offer expert advice to match these with designer gemstones like the ‘champagne’ diamond, tiger’s eye, fire opal or the yellow brown topaz. Summer time brings about lighter and more pastel hues that can be accentuated by bright transparent pink tourmalines or sapphires to light blue sapphires and mauve amethysts.

When it comes to the cut, standard cuts and classic styles have made way for fancy cuts like the briolette teardrop and checkerboard facets. These are being used in necklaces and other jewellery items like earrings and even bracelets and rings. Arguably, the standard round, oval and more recent rectangular cuts may never die, fancy cuts are preferred these days since they are uncommon and stylish. The brilliance of these cuts is unmatched and far superior to the classic cuts that were popular in the yesteryears.

Even though availability of the product locally may be an issue, those who are mesmerized by the beauty of gemstones and their variety can source these from the Internet if they are not available locally. Even manufacturers and marketers who are involved with the industry and want to source roughs need to just access the Internet to find various providers across the world be it in South Africa, Tanzania, Europe, Sri Lanka or the Indian subcontinent.

Fine jewellery purchases low in 2008; JCOC

The Jewelry Consumer Opinion Council (JCOC) conducted a survey to understand the holiday purchase pattern of 2008. Purchases, overall, including jewellery seem to have gone down.
According to the survey, the percentage of consumers who spent between "$100 and $200" on fine jewellery has decreased to 19% from the earlier 31% last year.

Observing a slight change in the shopping pattern as compared to 2007, the report revealed that there was an increase in the percentage of respondents who shopped at mass discount stores and at department stores.

JCOC founded in 2001, provides the gem and jewellery industries with fast, efficient, effective, and powerful business and market intelligence about jewellery products and their respective end-use consumers.

Green bench practices reduces environmental impact

As recently as 2004, the environmental impact from making jewelry was rarely mentioned. But awareness has grown quickly, and today a Google search for the term eco jewelry provides millions of results.
The green movement is exploding as the media focus attention on the environment and global warming, spurred by Al Gore’s film, An Inconvenient Truth, released in 2006. But the words green and sustainable are overused and have largely become marketing hype. So let’s define them: The green movement interweaves environmental goals with a sense of personal and social responsibility. Sustainable practices use resources without depleting them or permanently damaging the environment that yields them.

For jewelers, sustainable business practices begin with analyzing their supply chain. When placing orders, ask questions about suppliers’ products and practices before purchasing. Where do they come from? Is the metal recycled? Are the gemstones responsibly sourced and processed without using child or sweatshop labor? How have they lessened the environmental impact of their packing materials and shipping procedures?

Ask to see copies of their fair-trade, social, and environmental policies and ask which of their products are produced accordingly. If no policies exist, encourage them to develop responsible practices and abide by them in their sourcing. “Be sure you bring up your concerns, and if they don’t give you the answer you’re looking for, seek alternative [sources],” says Eric Alulis, vice president of product development for Superfit Inc.

“Buy from companies that are earnestly trying to make a difference,” advises Gabriel Craig, green consultant for the Society of North American Goldsmiths. “Request that they carry eco-friendly products, or inform them that you would be interested in purchasing eco-friendly products if they were to be carried.”

When possible, choose local suppliers to minimize shipping costs and carbon footprint.

Metal refining is also potentially damaging to the environment, says Alulis. “When choosing a refiner to partner with, be sure to understand how their operations are run,” he advises.

Refiner Hoover & Strong is working to minimize its environmental impact and improve the efficiency of its operations. “Our new refining process uses 80 percent fewer chemicals and saves two days of refining time,” says company president Torry Hoover.

More suppliers are shifting to recycled metals. All precious metals purchased from Hoover & Strong are 100 percent recycled. At Rio Grande, sterling casting grain and sterling jewelry products cast in-house are 100 percent recycled.
Using recycled precious metals reduces the need for mining, lessening its environmental impact.

Tracing the supply chain of gemstones is more difficult. Considerations include the treatment of miners, stonecutters, and polishers in addition to the environmental impact of gem mining and manufacturing. The Madison Dialogue was established in 2006 to promote communication among groups that want to encourage the development of responsible sources of gemstones and precious metals.

Some retail jewelers are partnering with small-scale miners who can assure them of ethical practices. Others are partnering with wholesalers who oversee each step of the supply chain.
More information on this can be found in the April 2008 issue of JCK (The Green Issue).

Capture and reclaim all precious metals. You can download tips for improving your returns from the Hoover & Strong Web site. These include separating metal scrap, installing a sink trap, capturing dust in floor mats or carpets, and vacuuming frequently with a dedicated vacuum. Collect anything used in precious-metal manufacturing in a special bin to be turned in for refining. Aprons, rags, buffs, brushes, emery paper, and polishing dust also may be refined.
Jewelers can use a wet paper towel (made from recycled paper) to clean their hands before washing at the sink. Workers should reuse their own paper towel throughout the day to reduce waste. Collect the towels in the bin to be refined in order to capture particles usually washed away. The refiner assures us this practice is worth the effort, expense, and resources, stating,
“You would be surprised at how many small particles go into the sewer otherwise.” Hang a cloth towel by the sink to dry hands after washing.

James Binnion Metal Arts recommends using a fully enclosed polishing hood like the Quatro Clearview. “It makes a significant difference in how much dust you capture, which is a sustainable environmental health practice and saves you money,” says James Binnion. He also recommends using cartridge or bag-type dust collectors instead of benchtop units, which allow much of the dust, including precious metals, to be blown out of the back of the unit. Clean the unit and change the bag or cartridge regularly to keep the system running at optimum efficiency, and send dust and collector to the refiner.

Encourage customers to recycle their precious metals. America’s jewelry boxes contain an incredible supply of precious metals. Everyone has broken, outdated, or rarely worn jewelry that could be brought back into the supply chain, significantly reducing the need for mining. Encourage people to trade their old jewelry for store credit, and educate those who do about the environmental and monetary benefits. Hoover & Strong offers a formula and estimation chart to help jewelers calculate how much to offer for old jewelry. As more people seek environmentally sustainable products, this will help ensure the future of your business.
Conserve energy, water, and fuels. Use compact fluorescent and standard fluorescent light bulbs. Fix drafts to reduce heating and cooling bills. Turn things off when not in use.
Marc Choyt, president of Reflective Images and author of The Ethical Jewelry Handbook, recommends working with organizations that can help you compensate for the carbon you generate. He explains, “You can do this through a number of ways, from tree planting to purchasing carbon offsets.”

Designer Toby Pomeroy, Corvallis, Ore., who pioneered the idea of using precious metals from reclaimed sources, has the option to purchase sustainably generated electricity from Pacific Power. He and Choyt encourage their employees to bike to work, and Pomeroy offers a $25 per month bike-shop credit. Similar incentives could encourage employees to take public transportation.

Control water usage. Never let water run when not in use. Consider keeping a wash bucket in the sink or near your bench instead of running water down the drain to wash each item. If you replace the solution in your ultrasonic cleaner frequently, implement a system with two units. Use the first for pieces straight from the buffer and the second for final cleaning. When the dirty water needs to be changed, replace it with the cleaner water from the second machine. Starting only one new bath will save water and use fewer cleaning agents, said manufacturer Aron Suna to the MJSA Journal.

Reduce toxics and chemical use. Many jewelers have switched to cadmium-free solders and fluoride-free fluxes and are seeking other less toxic alternatives to traditional studio practices. Citric pickle solution, for example, is healthier for the jeweler and the environment than standard pickle solution, although most jewelers report that it works more slowly. “We have been selling quite a bit of citric acid pickle lately,” says Steve Frei of Otto Frei.

Jeweler, author, and educator Charles Lewton-Brain says the simplest thing jewelers can do to lessen their environmental impact is “change practices to reduce chemical loads.” His book, The Jewelry Workshop Safety Report, includes sample chemical inventory and chemical profile sheets as well as a procedure evaluation form and a substitution checklist.

Lewton-Brain recommends analyzing all studio practices, implementing health and safety precautions, and substituting alternatives to reduce risks. He says jewelers should “avoid bombing, reduce cyanide use, and reduce or eliminate solvents.” If solvents are necessary, he recommends ethyl, benzyl, and isopropyl alcohols, as well as acetone, as the safest. “There is no such thing as nontoxic,” Lewton-Brain says. “Toxicity is often dose dependent.”

With all less toxic alternatives, be sure to read the MSDS (Material Safety Data Sheets) and use proper ventilation, safety, and disposal procedures. Hazardous waste disposal procedures vary by region. Check with local government and sanitation agencies for information. Reducing chemical use not only saves the environment but also can offer cost savings. Experts suggest jewelers look to other industries to find innovative environmental solutions regarding chemical use and substitution.
Alulis says his company has achieved significant savings by using a cleaner manufacturing process with its newest high speed CNC machines. “We are able to run all of our CNC operations using 100 percent ethanol as a coolant/lubricant,” he explains. Substituting ethanol for the commonly used petroleum lubricants reduces the disposal and refining costs associated with petroleum-based lubricants, plus it evaporates cleanly, eliminating a secondary degreasing step. This less toxic substitution saves the company approximately $10,000 annually.

Reduce and recycle packaging. Reduce the Reduce and recycle packaging. Reduce the size of your packaging, choose recycled packaging products, and ask your suppliers to do the same. Hoover & Strong encourages customers to recycle their boxes by using them for shipping back scrap for refining. Choyt says his company saves money by reusing boxes, including FedEx boxes, and shredding paper for packing. “At first, we had some concern because we imagined that customers might not like to receive jewelry in a used box, so we had a stamp made that says in green ink ‘All Shipping Products Are Recycled.’” Reuse plastic peanuts and other non recyclable packing materials or take them to a retail mailing service such as Mailboxes Etc.

Make it easy for employees to recycle by having the recycling bins easily accessible. For example, put aluminum and plastic bins in the lunchroom and a paper bin by the copier. Many companies purchase recycled paper and reuse the second side of paper for interoffice copies.

Educate yourself and others. Do everything you can to educate yourself on environmental and ethical issues associated with the jewelry industry, as well as the impact of your studio procedures. Use what you learn to educate your customers about ethical and sustainable values and practices.

“The eco movement in the jewelry industry is in its infancy but is growing at an astonishing rate,” says Toby Pomeroy. He estimates that awareness of and interest in eco jewelry at the 2008 JCK Show in Las Vegas was approximately 50 times greater than it was last year. That should be a wake-up call. And it’s very likely that consumers are out in front of the industry on environmental and humanitarian issues. As consumer awareness increases, your efforts to help the planet will also help your business.

Subodh Gupta, Damien Hirst and others craft jewellery for a cause

What would prompt Subodh Gupta, the reigning prince of Indian art, to design jewellery? A good cause—in this case, raising money for the National Society for the Prevention of Cruelty to Children (NSPCC), a UK-based organization dedicated to the welfare of children who have suffered abuse. Participating along with him are Indian-born British sculptor Anish Kapoor, the famous Damien Hirst and a clutch of artists and jewellery designers. Sotheby’s London will be auctioning 10 articles of jewellery, including a ruby and diamond pendant designed by Gupta, a gold enamel ring designed by Kapoor and a silver charm bracelet by Hirst, on 17 December in London. Other lots include earrings, a watch and a pendant from jewellers such as David Morris, Chopard and Theo Fennell.



Sparkler: A diamond and ruby pendant by Subodh Gupta.

According to Joanna Hardy, senior specialist and head of jewellery for the auction house, designing jewellery may be a first for Gupta but it is an old trend among artists—those who have done it earlier include Pablo Picasso, Salvador Dali and Georges Braque. “Artists have lent their skill and talent to jewellery making,” she says. “It is a challenge for the artist to make something that stands out, and is also recognizable as their work, and is also wearable.”

The 22-carat gold with enamel ring designed by Kapoor, called Water Ring1, (estimated price £15,000-20,000; around Rs11-15lakh) is similar to the piece he has designed earlier for a London jeweller, and Gupta’s ruby, diamond and black diamond pendant (estimated price £20,000-25,000) like many of his artworks, derives inspiration from an utensil of everyday use in India. According to the auction house’s description, it “recreates the shape of a stainless steel pan in white gold and contrasts it with precious gems, the gems working to elevate this basic cooking utensil to an object of adornment”.
The pieces up for auction are expected to fetch £100,000 and buyers of some of the pieces will also be treated to add-ons such as champagne lunches by the jeweller or a tour of the artists’ studios. The buyers of the Hirst silver charm bracelet, “edition 38 of just 50 (pieces)”, (estimated price £15,000-20,000) will get to tour one of the artist’s London studios.
The artists were approached by the NSPCC for the project. “NSPCC has special relationship with the artists,” says Hardy. “Everyone has been so generous with their time.” For the benefit of potential buyers from India, Hardy points out that the pieces go well with traditional jewellery.

For details on how to bid, visit www.sothebys.com

$1 Million reward for information about Paris jewel theft

A reward of $1Million (700,000 euro) is being offered to the first person who can provide any lead that aids recovery of jewellery stolen from Harry Winston, Paris.
The reward will be given by insurer Lloyd's of London to the first person, who can provide information leading to the recovery of jewels worth 85 million euros', said a report.

The police are of the opinion that they are dealing with professional jewellery thieves who had meticulously planned their crime and knew the boutique's lay-out well.

Investigators were also trying to figure out whether there are any links between the present theft and the heist on the same shop in October last year.

A group of four thieves - two of them disguised as women- had stolen nearly all the jewels on display at the Harry Winston boutique in Paris earlier this month.