Difference Between Hallmark Gold and KDM Gold

Gold has always held a special place in Indian household – not just for its beauty but also as a trusted financial asset. However, gold comes in various forms. In India, the two most common types of gold are the hallmark gold and KDM gold. While they may look similar, they differ in purity, certification and how lenders evaluate them. In this blog, we will walk you through the difference between hallmark gold and KDM gold and how it can impact your loan eligibility. Read on!

What is Hallmark Gold

Hallmarked gold refers to gold that has been tested and certified for its purity by an authorized body like Bureau of Indian Standards (BIS). When you see the BIS hallmark on a piece of jewelry, it confirms that the gold content meets the national quality standards.

What is KDM Gold

KDM gold refers to those jewelry which are made using cadmium soldering. Earlier, cadmium (KDM) was used to join gold parts which led to a final product of 92% purity, even if the base gold was 22K.

KDM Gold vs Hallmark Gold: Key Differences

The main difference between KDM gold and hallmark gold lies in purity certification and the method of jewelry making. Here are several other factors which make them different:

How Different Types of Gold Affects your Loan Eligibility

When you apply for a Gold Loan, lenders assess the purity, weight, and current market value of your jewelry. Here’s how different types of gold can impact that process:

• Loan Value: Lenders prefer hallmark gold because its purity is guaranteed. This reduces their risk and helps you get a high loan-to-value ratio. However, with KGM gold, lenders tend to offer lower loan amount, and you might need to submit additional purity checks.
• Low Interest Rate: Some lenders offer attractive interest rates for certified gold. As it is easier to value and liquidate in case of default.
• Transparency and Speed: If you submit genuine purity certifications, the evaluation of your gold is quicker and more straightforward. This speeds up your overall loan approval process.

To Conclude

Whether you own gold for investment or emotional value, knowing its type matters especially when you’re thinking of applying for a Gold Loan. Hallmark gold’s certified purity and high resale value offers better loan eligibility. While KDM gold may not fetch a favorable loan amount or tenure due to the absence of purity certification, hallmarked gold is more likely to be accepted by lenders. So, if you plan to take a Gold Loan in the future, consider upgrading your jewelry to hallmarked options.

Frequently Asked Questions

Is KDM gold still available in the market?

KDM gold is slowly being phased out due to lack of certification and health concerns. The use of cadmium in its soldering process poses serious health risks, especially to jewelers who may inhale toxic fumes during manufacturing. Therefore, most jewelers now prefer BIS hallmarked gold.

What is 916 gold? 

916 gold is another name for 22k gold. It contains 91.6% pure gold which is commonly hallmarked in India.

Is hallmark gold more expensive? 

Hallmark gold usually costs the same as non-hallmarked gold. However, a hallmark gold comes with a certified assurance of purity. This helps you get better value when reselling the gold or applying for a Gold Loan.