Summary of this article
31 per cent consumers report cheating in silver purchases
93 per cent support mandatory hallmarking for silver items
Survey highlights trust gap in silver market transactions
On the auspicious occasion of Akshaya Tritiya, when millions of households across India purchase precious metals for prosperity, a cloud of uncertainty hangs over the purity of silver.
While traditionally it is believed that the day is auspicious for the purchase of jewellery and coins, many customers have reported a lack of transparency in these transactions. A survey by LocalCircles has revealed that 31 per cent of buyers believe they have been cheated during their silver purchases in recent years.
This has led to 93 per cent of citizens calling for the implementation of mandatory hallmarking for silver items to protect their investments.
Extensive Fraud Reported By Silver Buyers
The survey points towards a persistent problem with the purity of silver sold in the market. Among those who have purchased silver in recent years, a significant number of people reported being victims of unfair trade practices. Around 23 per cent of respondents were cheated multiple times, while 8 per cent said it happened to them at least once. Conversely, 42 per cent stated they have never been cheated, while 27 per cent did not give a clear answer.
Without a legal mandate for quality certification, some sellers may provide silver that does not meet the purity standards they claim to offer. Many buyers face difficulties when trying to verify the quality of silver at the point of purchase.
Just like gold, silver is widely used for religious purposes, small gifts, and traditional items like anklets. These items are often small or considered to be of lower value, they are frequently sold without formal certification. This lack of a formal paper trail makes it difficult for a buyer to know if they are getting the actual value for the money they spend.
Public Demand For Compulsory Quality Standards
The call for mandatory hallmarking is now a rising issue among consumers. An overwhelming majority of consumers, nearly 93 per cent, want the government to step in and regulate the silver industry. By contrast, five per cent of those surveyed stated that mandatory rules would increase the cost of products, while two per cent of the respondents believed that hallmarking is not needed.
At present, hallmarking of gold items is compulsory in a large number of places in India, whereas for silver products, hallmarking is only optional for the jeweller. To date, 380 districts in the country have made it compulsory to hallmark their gold items.
On the other hand, a shopkeeper can voluntarily hallmark his silver items with BIS certification; however, it is not a legal compulsion.
A mandatory system would ensure that every piece of silver meets a specific standard of purity. This would help protect buyers from paying a high price for low-quality metal. People want the same level of protection for silver that they currently enjoy when buying gold articles, as it would reduce the risk of being misled by unscrupulous sellers.
Current Framework For Silver Certification
Currently, there are certain measures to trace purity, but they are not universal yet. The government on September 1, 2025, announced that it has made the use of Hallmarking Unique Identification (HUID) mandatory in all silver articles bearing a hallmark. However, since the process of hallmarking itself remains voluntary, not all goods in the market bear this mark. This puts the buyer in a scenario where the product quality may depend solely on the assertions of the seller.
Under the existing system, seven grades of purity of silver between 800 and 999 are in existence. In case a jeweller chooses to hallmark their products, there are certain rules that they need to adhere to in order to achieve digital traceability. But because not all sellers are required to do so, many still sell silver without being formally certified by the Bureau of Indian Standards (BIS).
