Hallmarking, you could say, was the earliest form of consumer protection.
As most jewellers know, all metals are used as alloys in the manufacture of precious metal jewellery, watches and silverware. These metals are mixed with other elements to provide flexibility and durability.
But even the most experienced jeweller cannot tell just by looking at a piece how much precious metal there is in an alloy or whether the plating is over a base metal core. This means there is a huge opportunity for fraudsters to take advantage of suppliers and retailers.
Australia has more imports than locally-manufactured items primarily due to our strong economy and stringent measures in place for our factories and workers, which makes manufacturing in this country expensive when compared on a global scale.
But when these goods are imported from overseas, who checks the finished product that has the stamp of 9-carat, 18-carat or 925, and who checks the weights and standards?
Suppliers often sell these items to retailers in good faith, who in turn sell them to consumers. If, for insurance purposes, the items are valued and discrepancies are found, whom do consumers prosecute?
The Gold and Silversmiths Guild of Australia, the JAA or any other jewellery entity don’t enforce hallmarking. But I think they should.
Sure, there are trademarks and makers’ marks to show the origin of a manufactured piece, but this does little to protect the industry or the consumer.
Under the Hallmarking Act it is illegal for anyone to sell or describe a precious metal item as gold, silver, platinum or palladium unless it is hallmarked. If we prescribe to this Act, we will eliminate unfair and illegal competition and belong to a like-minded business group interested in responsible trading and growth.
We need to clean up our industry. We need to restore consumer trust and respect. We don’t want a shonky reputation.
So, where do we start?
Well, after implementing mandatory hallmarking, the next thing I would suggest is that we deal only with reputable suppliers. Those that have history and good referrals/references.
It’s one thing for a retailer to be able to return under-carated goods back to a reputable local supplier, but what about the increasing number of overseas jewellery “bagmen” roaming the CBD selling cheap jewellery from backpacks? Retailers are putting their business’ reputation at risk dealing with these people.
Goods bought from bagmen can’t be returned and most retailers would struggle to even identify these suppliers.
Retailers should be far more prudent when purchasing precious metals. At present, if there is no hallmarking, they should be demanding tests from their local suppliers or conduct a spot test themselves.
As a peak body, I would love to see the JAA offer a test service, conducted at retailers’ stores, either for free or for a minimal cost. This could also help to ensure the suppliers aren’t being duped. It might even encourage more JAA memberships.
Buying groups could also offer a similar service to their members.
As an added back-up, perhaps the JAA could sell in-house testing equipment to retailers at a cost, so that they can conduct their own random testing of pieces. This will help remove many of the initial problems.
For instance, I believe that paying for an 18-carat gold engagement ring only to find it’s 9-carat gold is comparable to buying a new car and finding out it has a reconditioned engine.
If that happened to me I know how I would feel – ripped off. I would never buy from that store again.
If consumers are distrustful, they will buy elsewhere, like overseas, or even buy other non-jewellery items instead.
But if we can regain their trust by keeping to a standard, by consistently providing top quality product, then they will feel they are still getting value for money and our sales will grow.
Anita Kornmehl is the director of Peekays Findings.