India's Silver Market Faces Purity Challenges Amid Rising Investment Demand
India's silver market is experiencing an influx of impure products due to increased investment demand and price surges. The Bureau of Indian Standards (BIS) is urged to implement mandatory hallmarking and licensing to enhance product quality and consumer protection.
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The Indian silver market is currently confronting a significant purity crisis as counterfeit silver bars and coins proliferate. This situation has prompted refiners to call on the Bureau of Indian Standards (BIS) for mandatory hallmarking of silver products, scheduled to begin in September 2025.
Industry executives indicate that many jewellers are not complying with this requirement, resulting in a large volume of substandard silver lacking the necessary fineness standard of 999 purity. Currently, there are only 286 assaying and hallmarking centres for silver compared to 1,595 for gold.
Without BIS licensing for silver refiners, the prevalence of prohibited elements like nickel and lead in new jewellery persists. Improved quality standards could emerge with the introduction of certified silver bars on commodity exchanges.
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