Precious Metals | Hallmark System

The Precious Metals Market

Gold Pricing

The price of gold is determined on the open market, by a procedure known as Gold Fixing. Originating in London around 1919, Gold Fixing provides a twice-daily benchmark figure to the industry.

Like all precious metals, gold is measured by grams or troy weight. When it is alloyed with other metals the term "Carat" or "Karat" is used to indicate the amount of gold present, with 24 Carats being pure gold and lower ratings proportionally less. The purity of a gold bar can also be expressed as a decimal figure ranging from 0 to 1, known as the millesimal fineness, such as 0.995.

The Precious Metals Hallmark System

The modern Hallmarking System started in London, England in the 1300s to protect the public against fraud from unscrupulous sellers. Due to the high value of pure gold, silver and platinum, there is a great deal of temptation to increase profits by reducing the precious metal content of an alloy during the manufacturing of coins, jewelry, flatware, and other art objects. Hallmarking is an official designation that can only be added to an item after it has been assayed to determine its purity by an Assay Office. This is different than a voluntarily marking of "fineness" by the manufacturer, of which there is no way to verify its accuracy.

Traditionally, hallmarks are "struck" into the metal using a steel punch but Laser marking is now replacing the punch method by Assay offices.

Hallmark symbols consist of four "compulsory Marks." The "Date" hallmark became optional in 1998, but the other three symbols are still compulsory. The symbols give the following information:

• Sponsor or Maker: Who made the piece.
• Standard Mark: The guaranteed standard of fineness or purity.
• Assay Office: The Assay Office that tested and marked the item.
• Date: The year the item was tested and marked.

International Hallmark Convention

In 1972 the International Convention of Hallmarks (Hallmarking or Vienna Convention) was established to standardize the identification system across geographic boundaries. Countries that signed on to the Convention are: Austria, The Czech Republic, Denmark, Finland, The Netherlands, Norway, Portugal, Sweden, and Switzerland. In 1975, the Hallmarking Act was enacted to include the Platinum marking standardization.

Changes to the UK hallmarking system were made in 1999 in order to bring the system in line with European Union standards.

The Hallmarking of precious metals is still a legal requirement in the United Kingdom. The Birmingham Assay Office is the largest Assay Office in the World, testing and marking over 12 million items per year.

Bibliography and Further Reference:

The Birmingham Assay Office

The Convention on the Control and Marking of Articles of Precious Metals