Understanding Your Gold: KDM vs. 916 Gold

When it comes to gold jewellery or a gold loan, understanding the type of gold you own is crucial. Two terms you might encounter in the process include KDM gold and 916 gold. Both have distinct differences that can impact the value and durability of your gold.

KDM Gold

KDM is a traditional technique that uses cadmium as a solder for crafting gold ornaments. Cadium has a low melting point and was used for soldering purposes. It is essential for the material as filler to have a lower melting point as it helps preserve gold's purity. This allows for intricate designs to be created. However, concerns regarding cadmium's health hazards led to the Bureau of Indian Standards (BIS) banning its use.

Here are some important things to note about KDM gold:

• Health Concerns: Cadmium exposure can be harmful. Thus it is advised to avoid wearing jewellery made from KDM gold.
• Environmental Impact: Improper disposal of KDM waste can pose environmental hazards
• Low Resale Value: Due to the use of cadmium and the lack of BIS certification, this gold cannot be sold at a high rate.
• Ineligible for Gold Loans: Reputable lenders typically don't accept KDM gold for loans. This is due to concerns about purity and resale value, as well as the ban placed by BIS.

Some older jewellery might still be KDM gold. However, most modern gold pieces are crafted using safer soldering techniques.

916 Gold: The Hallmark of Purity

916 gold, also known as 22-karat gold, is a popular choice in India. It signifies that 91.6% of the metal content in the jewellery is pure gold. Meanwhile, the remaining 8.4% comprises alloys like copper or silver. These add strength and durability to the gold items. This blend offers a beautiful balance between purity and practicality.

Here are some pointers about 916 gold that you should be aware of:

• BIS Hallmark: 916 gold usually carries a BIS hallmark. This guarantees the gold's purity and adherence to BIS standards. The hallmark is crucial for ensuring the precious metal's authenticity and resale value.
• Higher Loan Eligibility: 916 gold is readily accepted as collateral by most lenders. This is because of its BIS certification and verifiable gold content. You might receive a higher loan amount compared to KDM gold with 916 gold.
• Durable and Beautiful: The metals used as alloys in 916 gold enhance its durability without compromising its shine. This makes it ideal for everyday wear.
• Good Resale Value: The BIS hallmark ensures the gold's purity. This ensures that you get a higher resale value compared to KDM gold.

The Importance of Hallmark When Buying or Borrowing Gold

The presence of a BIS hallmark on your gold ornaments plays a vital role:

• Ensures Purity: The hallmark guarantees that the gold adheres to BIS standards
• Protects Consumers: It empowers you to make informed purchases and avoid being misled
• Enhances Resale Value: Hallmarked gold typically fetches a higher price when selling
• Gold Loan Eligibility: Without a gold hallmark, securing a loan might be difficult

Always purchase gold from trusted jewellers who offer BIS-hallmarked ornaments. This ensures you get the value of your investment and a gold loan easily. The certified purity of this precious metal is an important part of the common gold loan eligibility criteria.

When selecting gold jewellery, consider your intended use. For everyday wear and long-term investment, 916 gold is the preferred choice. Its durability, BIS hallmark, and higher resale value make it a wise investment. Meanwhile, if you have inherited KDM jewellery, consider having it evaluated by a reputable jeweller.

By understanding the distinctions between KDM and 916 gold, make informed decisions. The BIS gold hallmark ensures that you can get the most out of this valuable asset. Make wise financial decisions and purchase gold responsibly.