KDM Gold vs Hallmark Gold: Key Differences Every Buyer Should Know
Table of Contents
Somewhere in most family lockers sits a chain or a pair of bangles bought around 2010, stamped "KDM 916" by a trusted local jeweller. The owner now hears that KDM is banned and wonders what that old gold is worth. Here is the short answer to the kdm vs hallmark gold question. KDM refers to an older jewellery-making method that used cadmium-based solder to join parts of a piece; its manufacture was prohibited in India in 2016 on health grounds. Hallmarked gold is jewellery tested and certified by the Bureau of Indian Standards (BIS) for the purity of the entire piece. The old KDM jewellery has not become worthless. It can still be sold, exchanged, or pledged for a gold loan after a purity test. This guide covers what each term means, how the two compare side by side, and what owners of older KDM pieces can practically do next.
What Is KDM Gold?
KDM stands for cadmium, the metal that gave the method its name. Traditional goldsmiths joined the parts of an ornament using a solder blend of roughly 92% gold and 8% cadmium. The mix was popular for good, practical reasons. Cadmium solder melts at a low temperature, flows cleanly into joints, and leaves no visible seam, so the finished piece looked flawless.
The problem was never the gold. It was the fumes. Cadmium vapour released during soldering is toxic, and the artisans breathing it daily bore the risk. Citing that health hazard, the government prohibited the manufacture and sale of cadmium-soldered jewellery in 2016, and workshops moved to cadmium-free solder alternatives. So, is kdm gold still made? No. New KDM jewellery has not been produced since the phase-out, though pieces made earlier still sit in households across India in large numbers.
Why Was KDM Gold Phased Out?
Worker safety, in one word. Cadmium fumes generated at the soldering bench are hazardous, with long-term exposure linked to serious illness among craftspeople. Regulators directed jewellers to switch to safer solder formulations, typically zinc-based, and the industry complied. The phase-out targeted the manufacturing process, not the jewellery already in circulation. Owning or selling an older KDM piece remains entirely legal.
What Is Hallmark Gold?
Hallmarked gold is jewellery that has been tested and certified at a BIS-approved Assaying and Hallmarking Centre. Under the current system, the hallmark itself is a set of three marks stamped on the piece: the BIS logo (a triangle), the purity and fineness number such as 916 for 22 carat or 750 for 18 carat, and the HUID, a six-digit alphanumeric unique identification code introduced in 2021 that can be verified on the BIS Care app.
Hallmarking is now mandatory for gold jewellery sold in India above a specified weight threshold. The certification's real weight lies in its scope. A hallmark guarantees the declared purity of the entire article, joints included, not just the main body of metal. That is exactly the assurance KDM-era jewellery could never offer, because the cadmium solder at the joints had a different composition from the rest of the piece. For a buyer, the stamp removes guesswork. For a lender, it simplifies valuation.
KDM Gold vs Hallmark Gold: Side-by-Side Comparison
|
Point of difference |
KDM gold |
Hallmarked gold |
|
Full form |
Cadmium-soldered jewellery |
BIS-certified jewellery |
|
Solder used |
Cadmium alloy (about 92% gold, 8% cadmium) |
Cadmium-free alloy |
|
Purity guarantee |
Purity varies at the joints; no independent certification |
Entire piece tested and stamped |
|
Current status |
No longer manufactured; prohibited since 2016 |
Mandatory for new jewellery above the notified weight threshold |
|
Resale value |
Lower; may face buyer resistance |
Higher; widely accepted |
|
Gold loan eligibility |
Accepted after an on-site purity test, valued at tested purity |
Accepted at standard valuation |
|
Identification |
Often an informal "KDM" stamp; no standard mark |
BIS triangle, fineness number and HUID |
Note: The comparison is indicative and for general information only. Acceptance, valuation outcomes and loan terms depend on the lender's assessment, the tested purity of the specific piece, and guidelines applicable at the time.
The table condenses to a single idea. Hallmarked gold carries a verified, piece-wide purity guarantee that KDM jewellery cannot provide. The gold inside a KDM ornament is real and holds value, but the buyer or lender has to test it to know exactly how much.
How Gold Type Affects the Gold Loan
Every gold loan starts with an assessment. The lender establishes the purity and net weight of the pledged jewellery, then works out the eligible amount from the applicable per-gram rate. With hallmarked gold, the stamped fineness gives the appraiser a verified starting point. With KDM pieces, the purity at the solder joints may differ from the body of the ornament, so the piece is valued after a physical purity test rather than on the stamp alone.
IIFL Finance accepts gold jewellery for a gold loan and conducts the purity assessment in the branch, in the borrower's presence, typically using non-destructive testing methods. Customers with older KDM ornaments can therefore still apply; the loan is simply calculated on the tested gold content. Under the RBI's 2025 directions on lending against gold and silver collateral, in force from 1 April 2026, the metal is priced at whichever of two published figures is lower, the 30-day average or the preceding day's close, from IBJA or a SEBI-recognised exchange, with the reference rate applied according to the assessed purity of the gold. Only the net metal counts, and the assessment certificate itemises purity, gross and net weight, deductions and value. Basic KYC documents, identity and address proof, are all the paperwork most applicants need. Borrowers can check their gold loan eligibility at the nearest IIFL Finance branch.
Practical Routes for Owners of KDM Jewellery
Three routes cover nearly every situation:
- Selling it as old gold. Valuation follows a purity test, not the hallmark status, so the actual gold content gets paid for.
- Exchanging it at a jeweller for new hallmarked pieces. The old ornament is melted, refined and remade, and the fresh piece carries a BIS hallmark.
- Pledging it for a gold loan. Lenders test purity on-site and lend against the assessed content, so the family gold raises funds without being given up permanently.
One misconception needs clearing. An existing KDM piece cannot simply be taken to a centre and stamped with a BIS hallmark. Hallmarking applies to newly made jewellery, so a KDM ornament needs to be fully melted, refined and remade before it can carry BIS certification. The stamp certifies the new article, not the old metal's history.
Conclusion
The kdm vs hallmark gold comparison is really a story of two eras. KDM belongs to the workshop practices of the past, phased out in 2016 for the sake of the artisans who made it. Hallmarking is the present standard, a piece-wide purity certification that protects buyers and simplifies valuation. What has not changed is the metal itself. Gold in a KDM bangle is as real as gold in a hallmarked one, and it keeps its worth; it just needs a test to prove it. Owners of older pieces can sell, exchange, or pledge them for a gold loan with IIFL Finance, where purity is assessed transparently in the branch. Terms, valuations and eligibility naturally vary with the assessed metal and the guidelines prevailing on the day.
Frequently Asked Questions
Is KDM gold still made in India?
No. The manufacture and sale of cadmium-soldered KDM jewellery was prohibited in India in 2016 because cadmium fumes endanger the artisans who work with them. Jewellers have since moved to cadmium-free solder, and hallmarking has become the norm for new pieces. Older KDM ornaments made before the phase-out still exist in lakhs of households and remain fully legal to own, sell or pledge. A shop offering "new KDM jewellery" today is a red flag; a genuine current piece carries a BIS hallmark instead.
Which is better for resale - KDM or hallmarked gold?
Hallmarked gold, clearly. The BIS stamp certifies the purity of the whole piece, so buyers and jewellers accept it at face value and price it accordingly. KDM jewellery invites questions about purity at the solder joints, and some buyers discount for that uncertainty. The gold content still gets paid for once tested, so KDM pieces are far from worthless at resale. Offers on the same KDM ornament can differ surprisingly between buyers, since testing methods and deductions vary from shop to shop, which makes a second assessment worth the small effort.
Can I get a gold loan on KDM jewellery?
Yes. Lenders including IIFL Finance accept KDM jewellery for gold loans. The piece goes through an on-site purity test in the borrower's presence, and the loan amount is worked out from the tested gold content at the prevailing benchmark rate, within RBI's tiered loan-to-value limits. No BIS hallmark is needed to apply. RBI does not mandate a detailed credit appraisal for gold loans within ₹2.5 lakh, though lenders may apply their own credit and documentation policies. Bringing all the pieces intended for pledge in one visit also helps, since the combined assessed value determines the total eligible amount in a single application.
How do I identify hallmarked gold jewellery?
A genuinely hallmarked piece under the current system carries three marks: the BIS logo (a triangle), the fineness number such as 916 or 750, and the six-digit alphanumeric HUID. The HUID is the strongest check, since it is unique to each article. Entering it in the BIS Care app pulls up the registered details of the piece, including the jeweller and the declared purity. A stamp that shows only "916 KDM" with no triangle and no HUID is a jeweller's own marking, not a BIS certification.
What does 916 mean on gold jewellery?
916 means the piece contains 91.6% pure gold, which corresponds to 22 carat, the most common jewellery grade in India. The figure is a millesimal fineness: 916 parts of gold per 1,000. On genuinely hallmarked jewellery, the 916 appears alongside the BIS triangle and the HUID after testing at an approved centre. On older pieces, a lone "916" or "KDM 916" stamp was simply the jeweller's claim, and for those, an independent purity test at a hallmarking centre or a lender's branch is the reliable way to confirm the true content.
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
