Understanding KDM Gold and Why it’s Banned

Gold has long been considered a symbol of wealth, security, and a safe haven for investment. While gold is a highly sought-after asset in various forms, there is a growing awareness about a specific type of gold, called KDM Gold. In the last few years, KDM Gold has been banned in many countries, including India, owing to many potential risks associated with its use in jewellery making. 

Table of Content

• What is KDM Gold?
• The Role of Kadmium in KDM Gold
• How Pure Is KDM Gold?
• Why is KDM Gold Banned?
• The Impact of the Ban on the Gold Industry
• Gold Loan Against KDM Gold

What is KDM Gold?

KDM Gold means a type of gold alloy used in the making of jewellery. KDM or Kadmium-soldered gold is a process used for alloying gold with other metals. Traditionally, gold jewellery is made using several metal alloys to improve its durability and change its colour.

However, KDM Gold stands out due to its unique composition. It contains a high percentage of pure gold (24 Karat) but is mixed with other metals like Kadmium to enhance its malleability and colour.

The Role of Kadmium in KDM Gold

Kadmium is a soft, silvery-white metal that is highly toxic to both humans and the environment. Mainly, it is used for improving the aesthetic qualities of gold jewellery and giving a more attractive finish. However, the toxicity of KDM is a major cause for concern.

When KDM Gold jewellery is worn for a longer time, the Kadmium content may gradually be released, especially when exposed to heat or friction. This can lead to severe health risks, including skin irritation, respiratory issues, and more serious long-term effects. Also, Kadmium can contaminate the environment, and its use in gold articles can lead to harmful exposure to those involved in the manufacturing process.

How Pure Is KDM Gold?

KDM gold is typically available in 22 karats, meaning that KDM contains 91.67% pure gold mixed with other metals. During jewellery making, artisans mix the gold alloy in specific quantities and add Kadmium for the soldering process. As a result, the mixture has 92% gold and 8% other metals, making it ideal for creating detailed and intricate jewellery designs.

Why is KDM Gold Banned?

Health Risks

There are many health risks associated with Kadmium exposure. It is known to be a carcinogen and is harmful to human health, especially when it comes into contact with skin or is inhaled.

Regulatory Measures

Since Kadmium is unsafe, regulatory bodies in many countries have stopped or limited its use in consumer products, including jewellery. In India, BIS (Bureau of Indian Standards) amended IS 1417:2016 to state that gold alloys used to make jewellery or items must not contain Kadmium.

The hallmarking mark was also updated to show free from Kadmium. This means pieces made with KDM cannot be hallmarked.

Consumer Protection

Jewellery is worn close to the skin, and consumers have a right to expect that the products they buy are safe. With the presence of Kadmium in KDM Gold, there is a risk of exposure to harmful substances. Thus, consumer protection laws in many countries have led to its ban.

Environmental Impact

During the process of gold jewellery making, the release of kadmium into the air, water, and soil can contaminate local ecosystems. KDM gold is not biodegradable which means that it remains in the environment for long periods, causing long-term damage to nature and the ecosystem.

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The Impact of the Ban on the Gold Industry

The ban on KDM Gold has had a significant impact on the gold industry, especially in countries where KDM Gold was previously used extensively in jewellery manufacturing. Many gold jewellery manufacturers have turned to safer alternatives to Kadmium for alloying gold.

These include copper, silver, and nickel, which are not only safer but also provide durability and desirable aesthetic qualities without the risk of toxicity. This transition raised production costs and contributed to a modest increase in retail gold jewellery prices, because non-toxic soldering materials are more expensive than Kadmium. However, it offers an opportunity to differentiate their products as safer and more premium.

Also, buyers have become more aware of health and environmental effects, preferring jewellery that meets the safer, hallmark-compliant standards.

Suggested Read: Hallmark Gold vs KDM Gold vs 916 Gold: A Comprehensive Comparison

Gold Loan Against KDM Gold

Getting a gold loan against KDM gold is possible, but with certain conditions. Financial companies evaluate the purity and weight of the gold while determining the loan eligibility. If the jewellery is hallmarked and meets the standard purity requirements (22 karat (916), 18 karat (750) and 14 karat (585)) that lenders check, then even if it was made using that older soldering process, it may still be accepted as collateral. Make sure to check today’s KDM gold rate before finalising the lender. 

Muthoot Finance is India’s No. 1 Most Trusted Financial Services Brand as per the Power of Trust TRA Brand Trust Report (BTR) 2024. We offer the best gold loan schemes with attractive interest rates and easy repayment schedules. For more information about the gold loan at Muthoot, visit your nearest branch.