Skyrocketing Gold Prices in Nepal Highlight Need for Hallmarking

The price of gold in the domestic market of Nepal continued its upward trend on Tuesday, with 24-carat (pure) gold climbing to Rs 309,300 per tola, setting yet another record.

While 24-carat gold remains highly sought after, lower-quality gold such as 22-carat or below has received little attention. Business leaders say the absence of a government-regulated standard has hindered the growth of this more affordable segment.

Efforts to introduce hallmarking for lower-quality gold—certifying purity and content—date back over a decade, but both public and private sector representatives say no concrete policy has been implemented so far.

In 2014, a technical committee meeting on gold, gold alloys, and jewelry purity established Nepal Standards for gold content ranging from 9 to 24 carats and recommended setting up a hallmarking centre. However, the government has yet to implement these standards.

Senior Vice-President of the Federation of Nepal Gold and Silver Dealers’ Association, Dibesh Ratna Shakya, says a hallmarking system would help expand the domestic and international market for gold products. He urged for government support in establishing such centres, noting that if the private sector bore all costs, the price burden would fall on consumers. “If the government provides subsidies as in India, it would be easier,” he said.

President of the federation, Arjun Rasaily, added that with government approval, businesses could independently establish hallmarking centres.

However, former Director General of the Department of Standards and Metrology, Bishwobabu Pudasaini, claimed private businesses are reluctant because hallmarking would reduce their profits.

“When businesses cannot charge for anything other than wages for refining gold purchased from the central bank, their margins are slim. Hallmarking would cut into these profits, so they resist it,” Pudasaini said.

Despite these challenges, the popularity of 22 and 24-carat gold has grown, especially in urban areas, as consumers expect a fair price for gold when selling it. Globally, 24-carat gold typically contains 99.50–99.99 percent pure gold, while lower carat items contain higher proportions of other metals such as copper, silver, or zinc.

Shakya explained that without hallmarking, consumers cannot verify the purity of gold, and banks do not accept unmarked gold as collateral. Consequently, buyers and sellers face both financial and trust issues.

Rasaily noted that while 24-carat gold dominates outside the Kathmandu Valley, demand for 22-carat gold has increased locally due to its durability. For diamond-set jewelry, 14-carat gold is often used to ensure strength.

What is Hallmarking?

Hallmarking is a system used to verify the purity of gold and silver, certifying the percentage of precious metal in each item. It ensures transparency in buying, selling, and collateral use. Hallmarked jewelry typically bears three marks: the purity, the hallmarking centre’s stamp, and the jeweler’s identification. In Nepal, the Department of Standards and Metrology has the authority to regulate hallmarking, but in the absence of a national system, the Indian BIS standard is currently applied.