Hallmark Gold vs KDM Gold vs 916 Gold: What's the Difference?
Gold is considered a symbol of prosperity and a reliable financial safety net in Indian households. However, when buying jewellery or pledging gold ornaments for a gold loan, understanding the purity of your gold ornaments is important.
Terms like hallmark, KDM and 916 gold are used interchangeably by borrowers and lenders, but they have fundamental differences. Knowing what KDM gold means and how it differs from hallmark or 916 can help you assess the accurate value of your jewellery.
Knowing your gold purity and valuation is important because it affects your potential gold loan amount. In addition to valuation, lenders also consider the weight of the eligible gold ornaments before determining the loan amount.
What is Hallmark Gold?
Hallmark gold refers to gold jewellery that has been officially tested and certified for purity by an authorised assaying centre under the Bureau of Indian Standards (BIS). Hallmarking provides third-party assurance of the metal's purity or fineness.
BIS hallmarking provides official consumer protection. It guarantees that if an ornament claims to be 22K or 18K gold, it strictly contains the exact percentage of the fine gold declared.
Since the introduction of the Hallmark Unique Identification system in 2021, a BIS hallmark on gold jewellery consists of three parts:
- BIS logo
- Purity/fineness mark, such as 916 or 22K gold
- A six-digit alphanumeric HUID number
The HUID is unique to each hallmarked item and can be verified via the BIS Care app.
How to Check Hallmark on Gold?
To verify whether your gold jewellery is officially hallmarked, check the laser-marked marks on the inner side of the ornament. The marks can be verified with the official steps:
- Look for the BIS logo: Look for the official triangular Bureau of Indian Standards stamp on the jewellery.
- Check the purity mark: Examine the fineness number, such as 916 for 22K (91.6% purity), 750 for 18K (75% purity) and 585 for 14K (58.5% purity).
- Find the HUID: A unique six-digit code is etched on each piece.
- Verify the HUID: From the BIS Care app, use the “Verify HUID” feature to check the item’s hallmark details.
- Ask the jeweller: If you cannot verify the hallmarked marks, ask a BIS-registered jeweller to explain them.
The hallmark is usually placed in a discreet area on the jewellery, such as the inner surface of a ring or a bangle. The markings can be small, and jewellers often use a magnifying glass that is also available for customers to inspect the details.
What is KDM Gold?
The KDM full form is Cadmium, written as KDM in the Indian Jewellery market, and it refers to a technique of making jewellery.
As pure gold (22K) is too soft to be shaped into intricate designs, it is alloyed with copper or silver. To join different components together, jewellers use a soldering alloy, Cadmium, with a lower melting point. In simple words, KDC gold is jewellery soldered with an alloy ratio of 92% gold and 8% Cadmium.
How Pure is KDM Gold?
KDM does not automatically indicate a specific gold purity percentage. A piece of KDM jewellery could be made from gold of different purities, but typically it maintains a 92% or 22K fine gold content.
For instance, a jewellery item may be described as 22K KDM gold, meaning the gold has approximately 91.6% purity, and the KDM refers to the soldering method.
This is why KDM gold cannot be compared directly with hallmark gold based on purity. Hallmarking provides an official indication of fineness, while KDM describes how the jewellery was manufactured.
What is 916 Gold?
916 gold is classified as 22-karat gold and has a purity of 916 out of 1000 parts, meaning it is 91.6% pure gold, with the remaining portion consisting of other metals used to create the required alloy properties.
The 916 KDM full form simply means the ornament is 91.6% pure gold and has been soldered with KDM technology. While the 916 mark helps identify whether gold is 22K, it should not be confused with a BIS hallmark. Hallmarked jewellery pieces have the BIS logo, the purity mark and the HUID.
How to Identify 916 Gold?
You can identify 916 gold through the following checks:
- Inspect stamp: Look for the 916 mark, which indicates the ornament is 22K or 91.6% pure.
- Check BIS hallmark: On hallmarked jewellery, look for the BIS logo and the HUID with the purity mark.
- Verify HUID: Use the BIS Care App to check the status of your HUID.
- Check invoice: Your purchase bill should have the relevant information on the jewellery’s purity.
- Professional verification: If you are unsure about an old or unhallmarked piece of jewellery, you can have it tested at a BIS-recognised hallmarking centre.
Hallmark vs KDM vs 916 Gold: Comparison Table
| Feature | Hallmark Gold | KDM Gold | 916 Gold |
|---|---|---|---|
| What it means | Gold tested and hallmarked under BIS standards | Soldering process using cadmium alloy | Purity rating indicates 91.6% fine gold |
| Purity | Variable (22K, 18K, and 14K) | Typically 92% or 22K | Exactly 91.6% |
| Certification | BIS certified with six-digit HUID code | Uncertified | Refers to purity grade |
| Availability | Current legal standard in India | Banned for manufacturing; older pieces exist | Widely manufactured and available |
| Gold Loan Acceptance | Highest acceptance | Accepted based on actual test purity content | High loan rates for 22K |
Which Type of Gold is Best?
For jewellery buyers, BIS hallmarked gold is generally the better choice. Hallmarking provides independent assurance of the gold's purity. BIS hallmarked 916 gold is also a suitable choice, as it offers a perfect balance of purity, wearability and HUID verification.
For a gold loan, however, the important factor is not whether a jewellery piece is labelled KDM or 916. The lender will also check the gold's purity and weight against the gold's market price. Thus, a BIS hallmarked 916 gold will give the highest per-gram loan valuation as the purity is guaranteed.
How Gold Purity Affects Your Gold Loan Value?
Gold purity can affect your total gold loan amount. Higher-purity gold pieces have more gold content for the same weight as compared to lower-purity jewellery, so you get the highest gold loan per gram against high-purity jewellery.
For instance, a 22 karat (916) gold chain is approximately 91.6% pure, while an 18 karat gold chain is 75% pure, but both weigh 50 grams. In this case, you will get a higher loan amount against your 22 karat chain, even though both items have the same gross weight.
At Mannappuram Finance, we assess your gold purity and weight to calculate your eligible loan amount. We also consider current gold prices and the LTV ratio and accept gold ornaments with purity ranging from 18 to 22 karats.