Difference Between Hallmarked Gold, KDM and 916 Gold

Difference Between Hallmarked Gold, KDM and 916 Gold

Understand the differences between hallmark gold and 916 hallmarked gold, and learn how purity, certification, and quality standards influence gold prices and overall value in the market.

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What is hallmark gold? 

Hallmarked gold is gold that has been officially certified for its purity by a recognised authority such as the Bureau of Indian Standards (BIS). If you are wondering what is hallmark gold, it is essentially gold that carries a stamp confirming it meets strict purity standards, ensuring it is genuine and trustworthy.

In India, hallmarked gold is available in different purity levels such as 958 (23 karat), 916 (22 karat), 875 (21 karat), and 750 (18 karat). This hallmark is not just a symbol but a guarantee of quality, authenticity, and transparency. It helps buyers make confident and informed decisions while purchasing gold jewellery or investing in it. Choosing hallmarked gold ensures purity and adds long-term value to your purchase.

When buying gold jewellery, you often hear terms like hallmarked gold, KDM gold, and 916 gold. Each of these represents a different aspect of gold purity and quality. Understanding these differences helps you make smarter buying decisions and ensures you get fair value for your purchase.


How to check the hallmark on gold?

Checking the hallmark on gold helps you confirm its purity and authenticity before purchase. It is usually stamped in a small area of the jewellery and can be verified with a close look.

  • BIS logo: Indicates certification by the Bureau of Indian Standards
  • Purity mark: Shows gold purity in carat and fineness (such as 22K or 916)
  • Jeweller’s mark: Identifies the manufacturer or seller
  • Assaying centre mark: Confirms testing and approval centre

You can use a magnifying glass to clearly see these markings, often found inside rings or on necklace clasps. Verifying these marks ensures you are buying genuine gold with accurate purity, giving you confidence in your purchase and investment. 

Quick tip: Wondering how much you can borrow on your gold? Just check your gold loan eligibility—it takes seconds and minimal  paperwork!
 

KDM gold meaning and its importance

KDM gold refers to a type of gold used in jewellery making where cadmium is added to the gold alloy to make it easier to work with. The term “KDM” comes from cadmium-based soldering used in traditional jewellery crafting.

  • Meaning: Gold alloyed with cadmium for smoother soldering
  • Use: Helps create detailed and intricate jewellery designs
  • Advantage: Easier shaping and strong finish in ornaments
  • Limitation: Less preferred today due to health concerns linked to cadmium exposure

KDM gold is mainly valued for its craftsmanship benefits rather than purity certification. While it allows jewellers to create delicate designs, it is now largely replaced by safer and hallmarked gold options that ensure better purity standards and long-term trust for buyers.
 

Difference between 916 KDM gold and hallmarked gold

The difference between 916 KDM gold and hallmarked gold mainly lies in purity verification and official certification. While both may contain 91.6% pure gold, the assurance of quality is not the same. If you are wondering 916 kdm means, it refers to gold made using cadmium-based soldering in traditional jewellery making. In contrast, 916 purity gold means gold that contains 91.6% pure gold with verified hallmark certification.

  • 916 purity level: Both types generally contain 91.6% gold content
  • 916 KDM gold: Traditionally linked with cadmium soldering; purity depends on jeweller claim
  • Hallmarked gold: Tested and certified by BIS-authorised centres for authenticity
  • Trust factor: Hallmarked gold offers higher reliability and transparency
  • Usage preference: Hallmarked gold is preferred for investment, resale, and long-term value

Always check the hallmark stamp and request a proper bill before purchasing gold jewellery.


Why is the hallmark important for gold buyers?

The hallmark on gold is a trusted certification that confirms purity and quality as per Bureau of Indian Standards (BIS). It ensures that the gold you buy matches the declared purity and is not mixed with inferior metals. This becomes especially important when understanding terms like 916 kdm means, which refers to traditional cadmium-based jewellery making, and 916 purity gold means, which indicates 91.6% pure certified gold with hallmark assurance.

  • Purity assurance: Confirms accurate gold content such as 22K or 24K
  • Authenticity check: Protects buyers from fake or impure gold
  • Better resale value: Hallmarked gold is easier to sell or exchange
  • Market trust: Ensures transparency in pricing and quality
  • Investment safety: Helps retain long-term value of gold assets

Hallmarked gold gives buyers confidence that they are paying for genuine quality. It reduces risk, improves resale prospects, and makes gold a safer long-term investment choice.

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Latest RBI updates

Section

Parameter

Applicable Details

 

Eligibility Criteria

Gold purity accepted

18-22 Karat for jewellery and ornaments

24 karat for gold coins

Eligible collateral types

Gold ornaments, jewellery, and coins

 

 

 

 

 

 

 

 

 

Eligible limit for each collateral type

Ornaments

Total pledged weight across all loans must not exceed 1 kilogram

Gold coins

The total weight of gold coins pledged cannot be more than 50 grams.

Gold Jewellery

As per maximum loan amount.

Overall exposure limit

The total loan exposure across ornaments, jewellery, and gold coins together must not exceed the maximum loan limit of Rs. 2 crore.

Collateral protection

 

Any loss, damage, or discrepancy in the quantity or purity of your pledged gold identified during audit, return, or auction will be recorded and promptly communicated to you or your legal heirs. The reimbursement or compensation process, as per company policy and SOP, will be clearly explained. Delays in collateral release due to lender fault will attract compensation of ₹5,000 per day.

 

 

 

Gold loan renewal

Renewal parameter

You can request renewal of your gold loan before maturity if it remains in standard status and within permissible LTV limits. This facility is available only to existing customers. For bullet repayment loans, accrued interest must be cleared. Renewals are subject to credit checks, fresh applicable charges, and are not allowed after maturity.

 

 

Gold loan top up

Top up parameter

Top-up is allowed before maturity, subject to regulatory LTV limits, credit assessment, and customer eligibility. Fresh fees and charges apply. Top-up after maturity is not permitted, even if dues are outstanding. Top up facility is available only to existing users.

 

 

 

LTV (Loan to Value)

For loans up to Rs.2.5 lakh

85%

For loans between more than Rs.2.5 lakh to Rs.5 lakh

80%

For loans from more than Rs. 5lakh to Rs. 2 crore

75%

 

 

 

Gold Value

Evaluation parameter

As per the latest guidelines, gold loans are offered against specific purity of gold jewellery, ornaments and gold coins, valued using lower of the average closing price for your gold's specific purity over the last 30 days or the previous day's closing price, as published by IBJA or a SEBI-regulated commodity exchange, within prescribed limits and subject to KYC and timely repayment.

Impact of hallmark gold on gold loan approval

Hallmark gold significantly impacts gold loan approval, ensuring a smoother and more favourable process. When you use hallmark gold as collateral, particularly with a 916 hallmark, your loan is more likely to get approved quickly. This is because hallmark gold guarantees the purity and authenticity of the gold, reducing the risk for the lender.

The 916 hallmark gold price reflects its 91.6% purity, which is widely accepted and trusted in the market. This assured purity allows financial institutions to confidently offer better loan terms and higher loan amounts. With hallmark gold, you can expect a low gold loan rate, as lenders perceive less risk and can offer more favourable terms.

Bajaj Finance gold loan options are particularly attractive for those using hallmark gold as collateral. The transparent purity of 916 hallmark gold ensures that you receive a fair and accurate valuation, leading to a higher loan amount. Additionally, the clear documentation associated with hallmark gold can speed up the approval process, making it more efficient and hassle-free.

In summary, using hallmark gold, especially 916 hallmark gold, can positively impact your gold loan approval, offering you better rates and faster processing. This makes it an ideal choice for securing a Bajaj Finserv Gold Loan.

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Disclaimer

Bajaj Finance Limited (BFL) has the sole and absolute discretion, without assigning any reason to accept or reject any application as per BFL policy. *