BIS to come out with good delivery bullion standard for gold bars

MUMBAI: The Bureau of Indian Standards (BIS) will come out with a good delivery bullion standard for gold bars produced domestically from dore and jewellery by the end of this year, said a person who’s a member of the technical committee entrusted with the task.

India on average imports 700-800 tonnes of gold each year. A large part is in the form of London Bullion Market Association (LBMA) certified bullion bars, which banks and commodity exchanges have no problems accepting as authentic good delivery bullion.

The problem is with the around 250-300 tonnes of dore or raw gold, which domestic refiners process into gold bars and bears only their stamp of certification. Additionally scrap gold, which is sourced locally and converted into bars, also faces authentication issues. This includes bars produced from jewellery deposited with banks under Gold Deposit Scheme.

It is to develop a standard for gold bullion produced locally from dore and scrap that the BIS will put its mind to, said James Jose, member of the BIS’ apex gold standards committee called MTD Ten Committee on gold.

“Currently BIS hallmarking is done for 14, 18 and 22 carat,” said Jose. “In addition, a good delivery standard for bars produced locally which can be accepted across the board – by banks, commodity exchanges, proposed gold spot exchange, etc – is in the works.”

Jose said the committee based on directions from various government ministries will circulate a draft of the good delivery bullion standard by November and put in place the standard itself by December.

The authentication will ensure that buyers locally don’t lose out on value.