Hallmark in gold trading
A hallmark is an official mark stamped on gold jewelry or bars certifying its purity, often with the assay office, maker and a unique code, protecting buyers.
Also called Assay mark, Purity mark, HUID, Hallmarking
A hallmark is a set of marks applied to a precious metal item by an independent assay office or certified center after testing confirms its fineness. Depending on the country, it can include the purity (such as 916 for 22-karat or 750 for 18-karat), the assay office mark, the maker’s or sponsor’s mark and sometimes a unique identification code.
How it applies to gold trading
Hallmarks matter when gold is bought or sold physically. They are the buyer’s assurance that a 22-karat chain is really 91.6% gold, and they affect resale: hallmarked pieces are easier to sell at fair value. In India, for example, hallmarking with a unique identification code (HUID) is mandatory for most jewelry sold. Investment bars from accredited refiners carry their own stamps with weight, fineness, refiner and serial number.
For XAUUSD traders, hallmarks are background knowledge. They connect the spot price on a chart to the price per gram paid in a shop, after purity, making charges and taxes.
Worked example
Example (hypothetical numbers): spot gold is $4,000 an ounce, about $128.60 a gram for pure gold. A hallmarked 22-karat (916) piece contains 0.916 × $128.60 = about $117.80 of gold per gram, before making charges and taxes. An unhallmarked piece claimed as 22-karat but actually 18-karat (750) would contain only about $96.45.
A common mistake
Paying a 22-karat price for unmarked jewelry. Check the hallmark or get the item tested.
See also: Karat, Fineness, Making charges, Gram and 10-gram pricing.
Frequently asked questions
What does 916 mean on gold?
That the item is 91.6% pure gold, equivalent to 22 karats. 750 means 75%, or 18 karats.
Is hallmarking mandatory?
It depends on the country. Several countries require it for jewelry sold above a certain weight; check local rules.
Does a hallmark affect resale value?
Yes. Hallmarked gold is easier to sell close to its metal value because its purity is certified.