24K Gold Purity Guide: 999 vs. 995 Fineness & The 'HPM' Risk
Is your 24-Karat gold truly pure? Understand the critical difference between 999 and 995 standards and why you must avoid the unauthorized "HPM" mark.
When buying investment-grade gold, purity is everything. While 24-Karat represents the highest quality, Indian regulations (BIS) specifically use the 995 fineness standard for hallmarked items to ensure durability. This guide explains why "HPM" marked gold is risky, how to verify your gold using HUID, and how to ensure you are getting the value you paid for.
Key Takeaway: Always look for the BIS Hallmark and 6-digit HUID code. Avoid "HPM" markings, as they are non-compliant and may be confused with agricultural products.
Why Choose BIS Hallmarked Gold? Key Benefits
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Instant Verification: Use the BIS CARE App to verify the 6-digit HUID code in seconds, confirming your gold's history and purity immediately.
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Guaranteed Purity: Buying BIS-certified 24K995 guarantees 99.5% pure gold, tested by independent labs, protecting you from fraud.
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Lifetime Liquidity: Hallmarked gold is easier to sell or loan against because the purity is legally certified and universally recognized.
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Enhanced Durability: The 995 standard (vs. 999) includes a tiny amount of alloy, making the gold strong enough to hold the laser hallmark without rubbing off.
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Avoid Brand Confusion: "HPM" is actually a brand name for bio-fertilizers! Sticking to BIS marks ensures you aren't buying gold marked with agricultural trade names.
Technical Specifications: Gold Standards
| Parameter | Details |
|---|---|
| Regulatory Authority | Bureau of Indian Standards (BIS) |
| Material Name | 24-Karat Gold (Aurum) |
| Tracking Code | 6-Digit Alphanumeric HUID |
| Chemical Group | Precious Metal / Native Element |
| Formulation (Purity) | 995 (Hallmarked) or 999 (Bullion) |
| Compliance Status | Mandatory for Circulating Jewelry |
How It Works: The Science of 995 vs. 999
Why does the government mandate 995 fineness for hallmarking instead of 999? It comes down to material science and security.
- The Softness Issue: Pure 999 gold ($99.9\%$) is extremely soft. If you laser-etch a code onto it, the code can easily smudge or rub off during handling.
- The 995 Solution: By adding just $0.5\%$ of alloy (like copper), the gold becomes slightly harder. This ensures the HUID code remains readable forever, guaranteeing your authenticity.
- Traceability: The HUID system works like a digital fingerprint. Every single piece of jewelry or coin is tracked from the manufacturer to the retailer, eliminating fake gold from the market.
Note: "HPM" markings are not part of this secure system and cannot be tracked digitally.
Target Categories & Risk Assessment
| Gold Category | Validation Status & Risk |
|---|---|
| Investment Bullion (Large Bars) | Target: 999 or 999.9 Fineness. Highest purity, extreme softness. |
| Hallmarked Coins & Artifacts | Target: 995 Fineness. The BIS standard for durability and certification. |
| "HPM" Marked Gold | Target: HIGH RISK. Non-compliant, potentially unverified, or agricultural brand confusion. |
Valuation & Verification Guide
The Golden Rule: Always check for the "6-Digit HUID" to ensure accurate valuation.
Standards Table: Purity, Marking, & Verification Method
| Asset Type | Fineness (Purity) | Hallmark Components | HUID Required? | Verification |
|---|---|---|---|---|
| Standard 24K Jewelry | 995 ($99.5\%$) | BIS Logo + Purity + HUID + Jeweler Mark + AHC Mark | Yes (Mandatory) | BIS CARE App |
| Premium Bullion | 999 ($99.9\%$) | Refiner Mark + Purity + Serial Number | Varies (Check Refiner) | Refiner Certificate |
| "HPM" Gold | Unknown | Non-Standard | Missing/Invalid | Lab Testing Required |
*HUID = Hallmark Unique Identification: The 6-digit code that is the only legal proof of purity for jewelry sold after April 2023.
How to Buy Safely: Best Practices
- Timing: Always verify the HUID code before payment using your smartphone.
- Mixing: Do not confuse "HPM" fertilizer products with "HPM" gold. They are chemically unrelated.
- Coverage: Ensure the laser etching is clear, not smudged, and contains all 5 mandatory symbols.
- Safety: If you own unverified "HPM" gold, take it to an Assaying and Hallmarking Centre (AHC) for testing immediately.
Frequently Asked Questions
1. What does the "HPM" mark mean on gold?
"HPM" is not a recognized BIS standard. It may refer to an old jeweler's mark or is often confused with an agricultural brand. Treat it as unverified.
2. Is 995 gold less valuable than 999?
Marginally, yes. 999 is $99.9\%$ pure, while 995 is $99.5\%$ pure. However, 995 is the standard for hallmarked items because it is durable enough to hold the certification stamp.
3. Is the HUID code mandatory?
Yes. Since April 1, 2023, the sale of hallmarked gold jewelry without a 6-digit HUID number is prohibited in India.
4. Can I sell gold marked with "HPM"?
You may face difficulty. Most jewelers will treat it as unhallmarked and will require melting or testing (Fire Assay) before buying it, likely at a lower rate.
5. How do I use the BIS CARE App?
Download the app, select "Verify HUID," and type in the 6-digit code from your jewelry. It will show the jeweler's name, purity, and date of testing.
Safety & Disclaimer
Always read and follow the instructions on the official product label. The information provided here is for guidance only. This content is for educational purposes regarding gold standards. It does not constitute financial advice. Always verify gold purity at a BIS-recognized center.
