KDM, Hallmark Gold, and BIS 916: The Ultimate Key Differences Explained
Table of Contents
Gold, as we all know, is a precious metal prized for its beauty and durability. It has long been a symbol of wealth and prosperity. When purchasing gold jewellery, it is crucial to understand the different types of gold available and their respective characteristics. A few common terms you may encounter are KDM gold, hallmark gold, and BIS 916. So what’s the difference between KDM and hallmark and BIS 916?
While all these terms refer to gold jewellery, they differ in their purity and certification. So be careful when you are purchasing each of them.
What is KDM Gold?
KDM gold refers to gold jewellery soldered using KDM (Karat Divised Metal), an alloy containing 92% gold and 8% cadmium. This technique became popular for making intricate jewellery designs since cadmium-based soldering made joints smooth and durable. However, due to health hazards caused by cadmium, this method has been largely discontinued. That’s why when you compare the difference between KDM and hallmark gold, KDM falls short on safety and certification.
What is Hallmark Gold?
Hallmark gold is gold jewellery certified by a recognized body such as the Bureau of Indian Standards (BIS). This certification guarantees purity and authenticity. Hallmark gold jewellery carries a stamp that indicates its gold purity level. In India, hallmark gold is available in purities like 999 (24K), 958 (23K), 916 (22K), 875 (21K), 833 (20K), and 750 (18K). This ensures buyers get exactly what they are paying for.
Learn more about how to check hallmark on gold.
Key Differences: KDM vs Hallmark vs 916 Gold
When it comes to gold jewellery, buyers are often confused about the difference between KDM and hallmark, or the difference between KDM and 916. The key lies in understanding their purity, certification, and market acceptance.
Comparison Table
| Feature | KDM Gold | Hallmark Gold | BIS 916 Gold |
|---|---|---|---|
| Meaning | Gold jewellery soldered with cadmium alloy (KDM method) | Jewellery certified for purity by BIS or other recognized authority | Jewellery that is 91.6% pure (22K) and BIS-certified |
| Purity | Not fixed; usually 22K with cadmium soldering | Can be 24K, 23K, 22K, 21K, 20K, 18K | Exactly 91.6% pure gold (22K) |
| Certification | No official certification | Certified and hallmarked by BIS | BIS hallmark certification specifically for 22K |
| Safety/Health | Unsafe due to cadmium (toxic for makers and wearers) | Safe; no harmful metals used | Safe and widely trusted |
| Market Status | Outdated and discouraged | Standard in the market | Most common and accepted type of gold |
| Best For | Intricate designs in older jewellery | Guaranteed purity and resale value | Jewelry that balances purity, durability, and value |
- Why hallmark is essential: Hallmarking assures that the gold’s purity is verified and standardized. This protects buyers from fraud and enhances resale value.
- Why KDM is outdated: KDM gold has been banned due to cadmium’s harmful effects on both jewellers and consumers. It is neither safe nor certified, making it a poor choice in today’s market.
Impact of Hallmark and KDM Gold on Gold Loan Approvals
The type and purity of gold jewellery influence Gold Loan approvals, particularly during valuation. Both hallmarked and non-hallmarked gold may be considered, but assessment methods and eligible loan amounts can differ.
Hallmarked Gold
Hallmarked gold carries certified purity markings and a HUID number, enabling quicker verification during branch evaluation. Clear purity markings help streamline assessment and determine the eligible loan amount with greater certainty.
KDM Gold
KDM gold lacks hallmark certification and documented purity details, requiring detailed testing during valuation. Loan eligibility and the sanctioned amount depend on the assessed gold content and may be subject to lender discretion.
In all cases, the loan amount is calculated based on net gold weight and verified purity, adhering to the applicable Loan-to-Value (LTV) limits. Clearly marked, verifiable gold simplifies evaluation and enhances transparency during the approval process.
Price Difference between Hallmark and KDM gold
Due to its guaranteed purity, hallmark gold is generally more expensive than KDM gold. The price difference between the two types of gold can vary. It all depends on the gold’s purity and the design’s complexity.
The price difference between hallmark and KDM gold can be as much as 10%. For example, 22-karat hallmark gold jewellery can be 10% more expensive than 22-karat gold jewellery.
How to Identify Hallmark and KDM Gold?
Understanding the difference between hallmarked gold and KDM gold helps buyers make informed decisions, especially when purchasing jewellery or applying for a Gold Loan. Each type has distinct identification markers and characteristics.
Hallmark Gold
Hallmarked gold carries official purity certification. To identify it, check for:
- A purity mark such as 22K916 (91.6% purity) or 18K750
- A Hallmark Unique Identification (HUID) number stamped on the jewellery
- The jeweller’s identification mark
- A hallmarking centre mark
These markings confirm that the gold has been tested and certified for purity.
KDM Gold
KDM gold refers to jewellery manufactured using cadmium as solder. It does not carry modern hallmark certification and may not have a HUID number. Since cadmium use has been discontinued due to safety concerns, KDM gold is no longer commonly produced.
Key Differences
|
Feature |
Hallmark Gold |
KDM Gold |
|
Purity Certification |
Certified and stamped |
Not officially certified |
|
Identification |
HUID number and purity mark |
No HUID number |
|
Manufacturing Method |
Uses approved soldering methods |
Cadmium-based soldering |
|
Market Preference |
Widely accepted |
Phased out |
Checking these identifiers helps ensure authenticity and purity before buying or pledging gold.
To illustrate the price difference, consider the following example:
22-karat hallmark gold: ₹3500 per gram
22-karat KDM gold: ₹3150 per gram
As you can see, 22-karat hallmark gold is approximately 11% more expensive than 22-karat KDM gold.
What is BIS 916 Gold?
BIS 916 gold refers to gold jewellery certified by the Bureau of Indian Standards (BIS) that is 91.6% pure gold (22 karat). In simple terms, for every 100 grams of BIS 916 gold, 91.6 grams is pure gold, and the rest is alloy. It is the most commonly sold and trusted type of gold jewellery in India because it combines purity with durability. When comparing the difference between KDM and 916 gold, BIS 916 hallmark gold is safer, more reliable, and widely accepted.
Other Hallmark Marks
In India, there are four other hallmark marks that are commonly used for gold jewellery:
BIS 958: This hallmark mark indicates that the gold jewellery is 95.8% pure, which is the highest purity level available for gold jewellery in India.
BIS 875: This hallmark mark indicates that the gold jewellery is 87.5% pure.
BIS 750: This hallmark mark indicates that the gold jewellery is 75% pure.
BIS 585: This hallmark mark indicates that the gold jewellery is 58.5% pure.
BIS 916 is a widely recognized hallmark mark. It is a common choice for consumers who value quality and purity in their gold jewellery purchases.
Which One Should You Choose?
When you’re confused about the KDM and hallmark difference, the answer is clear—hallmark gold is always safer and smarter. Here’s what you should keep in mind:
- Direct Recommendation: Always buy Hallmarked BIS 916 gold jewellery for both purity and trust.
- For investment purposes: Go for 24K gold, as it is the purest form (though not suitable for jewellery).
- For jewellery: Choose BIS 916 with a hallmark because it is durable, safe, and widely accepted.
- Verification is crucial: Always check for the BIS hallmark stamp before making a purchase. This ensures that the gold is genuine and meets national standards.
- Avoid KDM gold: It is outdated, lacks certification, and poses health hazards.
In short, if you’re buying gold jewellery, go for BIS 916 hallmark gold. It combines purity, safety, and long-term value, making it the best choice for both investment and personal use.
Conclusion
In summary, understanding the *difference between KDM and 916* or *difference between KDM and hallmark gold* is essential for making informed gold purchases. While KDM gold offers affordability with lower purity, BIS 916 hallmark gold ensures verified purity, quality, and trust. Buyers should weigh factors like durability, resale value, and certification before investing, ensuring they choose gold that aligns with their needs and long-term financial goals. Being aware of these distinctions helps protect against fraud and maximizes the value of your investment in gold.
Frequently Asked Questions
No, KDM gold is largely discontinued due to health hazards caused by cadmium.
Hallmark gold refers to gold certified for purity (any karat), while BIS 916 gold specifically refers to 22K gold that is 91.6% pure and BIS-certified.
Yes, as per government rules, hallmarking is now mandatory for most gold jewellery in India.
Look for the BIS hallmark stamp, which includes the BIS logo, purity in karats, and jeweller’s identification mark.
BIS 916 gold is safer because it is certified, pure, and cadmium-free, unlike KDM gold.
KDM gold is an older form of gold jewellery made using cadmium as a solder, while 916 gold indicates 22-carat purity with 91.6% pure gold. However, KDM gold is no longer preferred, whereas 916 gold follows current purity and safety standards.
KDM gold is not recommended today, as cadmium used in soldering poses potential health risks when exposed to heat. Due to these concerns, most jewellers have phased out KDM gold and now offer only hallmarked gold jewellery with recognised safety and purity standards.
Gold loans are based on the assessed purity and quality of the pledged gold. KDM gold may be tested for actual gold content, but acceptance is at the lender’s discretion. Final loan eligibility and amount are determined after branch evaluation of weight, purity, and valuation.
Disclaimer : The information in this blog is for general purposes only and may change without notice. It does not constitute legal, tax, or financial advice. Readers should seek professional guidance and make decisions at their own discretion. IIFL Finance is not liable for any reliance on this content. Read more
