Fineness Hallmark

The fineness hallmark – also known as a punch or hallmark – is the most important marking on bars, coins, and jewellery made of precious metal. It indicates what proportion of the total weight is made up of the pure metal, and thus forms the basis for every melt value as well as for the legal classification as tax-exempt investment gold.

Where Does the Hallmark Come From?

The stamping of silver and gold items dates back to the Middle Ages. English goldsmiths were required from 1300 onwards to submit their work for assaying at London's Goldsmith's Hall – hence the term hallmark. In German-speaking countries, guild authorities developed their own punch marks, which in addition to the fineness often indicated the master craftsman and the place of assay.

Today, the Vienna Hallmarking Convention (International Convention on the Control and Marking of Articles of Precious Metals, 1972) regulates a uniform Common Control Mark for member states, including Austria, Switzerland, and a number of other European countries. Germany has not ratified the convention but applies its own regulations under the Act on the Fineness of Gold and Silver Goods as well as EU standards.

How Is Fineness Indicated?

The hallmark follows a thousandths scale (‰). Alongside this, the older karat designation for gold exists in the jewellery trade:

For silver, common stamps are 999, 925 (sterling silver), 835, and 800; for platinum, 950 and 999 predominate.

What Else Appears on the Hallmark?

A complete hallmark impression typically contains several elements:

1. Fineness number – e.g. "750" for 18-karat gold
2. Maker's mark – abbreviation or logo of the refinery or manufacturer
3. Assay mark / guarantee stamp – for officially tested goods, a state symbol (e.g. a crown in Austria)
4. Date letter or mint mark – on coins, the so-called mint mark
5. Serial number – on certified bars, often laser-engraved

For LBMA Good Delivery bars (400-ounce gold bars), the individual serial number of the bar is additionally required.

Significance When Buying and Selling

When a dealer or refinery purchases an item, the fineness hallmark is the first criterion checked. If it is absent or appears to have been tampered with, the achievable buying price falls significantly – in case of doubt, the dealer will demand an independent analysis (streak test, X-ray fluorescence). Using the current gold price and the stamped fineness, the material value can be calculated to the second.

For the VAT exemption on investment gold pursuant to § 25c UStG, a minimum stamp of 995 ‰ (gold) is required by law. Coins and bars without this proof cannot be traded as VAT-exempt investment gold.

Note: Tax and legal classifications of individual products should, if in doubt, be clarified with a tax adviser – this text does not constitute tax or investment advice.

Authenticity Testing Beyond the Hallmark

The hallmark alone is not sufficient as proof of authenticity. Professional testers always combine it with additional methods:

• Weight and dimension verification (Coin Weight Checker, Size Checker)
• Density method based on Archimedes
• X-ray fluorescence analysis (XRF) – non-destructive, highly precise
• Ultrasound – reveals tungsten inserts in bars
• Authenticity check online – quick orientation using reference data

In Brief

The fineness hallmark is the legally anchored core document of every precious metal item: it names the purity level, enables calculation of the material value, and determines the tax classification. Anyone who buys, sells, or inherits bars or jewellery should know the hallmark and, if in doubt, have it confirmed by an independent analysis.