Fineness Hallmark

The fineness hallmark – also called a punch mark 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 attributable to the pure metal, and thus forms the basis for every melt value as well as for the legal classification as VAT-exempt investment gold.

Where does the hallmark come from?

The stamping of silver and gold articles dates back to the Middle Ages. English goldsmiths had to bring their work from 1300 for testing to the London Goldsmith's Hall – hence the term hallmark. In the German-speaking world, the guild authorities developed their own punch marks, which alongside the fineness often also identified the master and the place of testing.

Today the Vienna Hallmarking Convention (International Convention on the Control and Marking of Articles of Precious Metals, 1972) governs a uniform Common Control Mark for the member states, which include Malta, Austria, Switzerland and a number of other European countries. Malta, as a signatory, recognises the Common Control Mark and applies EU standards for precious metal marking.

How is the fineness stated?

The hallmark follows a thousandths scale (‰). Alongside this, the older carat notation for gold still exists in the jewellery sector:

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

What else is on the hallmark?

A complete hallmark impression typically contains several elements:

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

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

Significance when buying and selling

When buying from a dealer or a refinery, the fineness hallmark is the first test feature. If it is missing or appears manipulated, the achievable purchase price drops considerably – in case of doubt the dealer will require an independent analysis (streak test, X-ray fluorescence). With the current gold price and the stamped fineness, the material value can be calculated to the second.

For the VAT exemption of investment gold under EU law (Directive 2006/112/EC), a minimum fineness of 995 ‰ (gold) for bars is legally prescribed. Bars without this proof cannot be traded as VAT-exempt investment gold. In Malta the same EU thresholds apply: investment gold is VAT-exempt (bars ≥ 995 ‰, coins ≥ 900 ‰), while silver, platinum and palladium are subject to the standard Malta VAT rate of 18 %.

Note: Tax and legal classifications of individual products should be clarified with a tax adviser in case of doubt – 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 further methods:

• Weight and dimension check (coin weight checker, size checker)
• Density method according to Archimedes
• X-ray fluorescence analysis (XRF) – non-destructive, high-precision
• Ultrasound – exposes tungsten inserts in bars
• Online authenticity check – quick orientation via reference data

In brief

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