India could soon require silver jewellery to carry official hallmarks, but only after the necessary infrastructure is in place, Bureau of Indian Standards (BIS) Director General Sanjay Garg announced on Tuesday, January 6.

Speaking at the 79th foundation day of the BIS, Garg emphasised the critical role of quality standards in national development. "Quality is the single most determining factor between a developed and a developing nation," he stated, highlighting how developed countries excel in infrastructure, governance, civic amenities, health services, and hospitality.

Understanding Hallmarking Benefits

Hallmarking serves as a certification that guarantees the purity of precious metals such as gold and silver. Each hallmark displays the metal's fineness, the BIS logo, the jeweller's identification mark, and in some cases, a unique Hallmarking Unique Identification (HUID) number. For consumers, hallmarked jewellery provides assurance that they are paying for the metal's declared purity, significantly reducing the risk of fraud or low-quality products.

Current Gold Hallmarking Progress

BIS has made substantial progress in gold hallmarking implementation across India:

Silver Hallmarking Development

Silver hallmarking has commenced on a voluntary basis and is gaining significant momentum. Since September 1, silver jewellery and articles can be hallmarked under a HUID-based system, with more than 23 lakh silver items certified so far. This system allows buyers to verify purity before making purchases.

"There is industry demand to make silver hallmarking mandatory, but we will do so only when the necessary infrastructure is ready," Garg explained. The phased approach ensures proper implementation without disrupting market operations.

Consumer Impact

For consumers, hallmarked silver jewellery is currently available, providing shoppers with a reliable method to ensure quality and avoid under-purity products. Once mandatory silver hallmarking is implemented, the system is expected to cover more districts and retailers, making it significantly easier to identify certified silver across the country.

BIS continues working to ensure access to safe and reliable products while supporting industry compliance, maintaining its commitment to consumer protection and market transparency.

Anindya Banerjee, Senior VP & Head of Research – Currency, Commodities and Interest Rates at Kotak Securities, shares his comprehensive outlook on commodity markets for 2026. With Indian commodity markets showing renewed momentum, precious metals are trading near one-week highs on safe-haven demand, while copper approaches record levels globally.

Gold-Silver Ratio Signals Structural Shift

The gold-silver ratio currently stands at 60 as of January 2026, indicating significant market dynamics. Historically operating between 60-100, this ratio has experienced a structural transformation over the past five years.

Silver's classification as a critical mineral by several countries, combined with limited recycling and supply constraints, suggests the gold-silver ratio could trend toward 40 or lower over time.

Bullish Outlook for Precious Metals

Banerjee maintains a bullish stance on both gold and silver for the next 3-6 months. Gold's primary driver remains de-dollarization, as central banks and institutions diversify away from dollar assets. Recent geopolitical developments reinforce this trend.

Gold has emerged from a prolonged consolidation phase, while silver benefits from both monetary and industrial demand in an already supply-deficit market.

Copper Rally Driven by Fundamentals

Copper's sharp rally to near-record highs reflects both fundamental and speculative factors. The metal sits at the heart of electrification, AI, semiconductors, and clean energy initiatives. Years of underinvestment have created supply constraints, with no major new mines expected in the near term.

The copper market could remain in deficit through 2026 and possibly 2027, supporting the long-term bullish trajectory despite short-term speculative influences.

Commodity Response to Geopolitical Risks

During geopolitical stress, commodities react in a specific sequence:

• Gold reacts first - Benefits immediately from monetary diversification
• Silver and copper follow - Critical for future industrialization
• Oil responds differently - Well-supplied market remains under pressure

Despite geopolitical tensions, oil markets remain well-supplied with potential for additional supply from regions like Russia and Iran.

Key Levels and Investment Strategy

For the current week, investors should monitor these critical levels:

Banerjee's top commodity picks for 2026 include silver, gold, copper, and aluminum, while recommending avoiding long-only positions in crude oil due to bearish supply dynamics.

Portfolio Diversification Approach

For 2026 commodity investment, Banerjee recommends a "tripod strategy": invest some amount immediately to avoid FOMO, deploy portions via systematic investment plans (SIPs), and maintain cash reserves for sharp market corrections. This approach balances immediate exposure with strategic positioning for potential opportunities.