#CIBJOCongress2023 Insights: Potential reclassification of silver ignites concerns

Experts from the Precious Metals Commission delve into the need to re-evaluate silver’s status, highlighting its implications and advocating responsible practices

India: The global gold jewellery market experienced a subtle decline in 2022, falling to 2,099 tonnes, just below the levels witnessed in 2019. This drop in demand was attributed to fluctuating gold prices in India, where a 2% decline in gold jewellery demand was recorded. However, as the world emerged from the COVID-19 era, there was a notable resurgence in demand during the festive season in October.

The issue was discussed at the World Jewellery Confederation (CIBJO) Congress 2023 held recently in Jaipur, India. Industry leaders, including Larry Drummond, Executive Director at International Precious Metals Institute (IPMI); Sara Yood, Deputy General Counsel, JVC; Jonathan Jodry, Business Development Director at Metalor Technologies SA, and Chair, ISO Technical Committee 174, covering the fields of jewellery, diamonds, gemstones, and precious metals; Huw Daniel, President of the CIBJO Precious Metals Commission; Karina Ratzlaff, Vice President, CIBJO Precious Metals Commission; and Doug Henry, CEO and Assay Master of the Birmingham Assay Office gathered for an intense discussion with the Precious Metals Commission to address critical matters affecting the precious metals industry.

Reclassification of silver

One of the major topics that stirred intense debate at the congress was the reclassification of silver. Known for its affordability and versatility in jewellery, silver has been a favorite among consumers. However, concerns have arisen regarding its reclassification, with proposed categories hinting at potential harm to reproductive health and foetal development.

The European Precious Metal Federation undertook comprehensive scientific tests to evaluate the bio-availability of various forms of silver, including metallic powder and nanoparticles. The results unveiled significant differences in bio-availability, prompting the federation to advocate a re-evaluation of silver’s classification. Further, they aim to promote a non-classified status for silver to ensure that both manufacturers and users are well-informed, underlining the importance of adhering to industry regulations to preserve credibility.

The potential reclassification of silver has ignited concerns about how manufacturers and users may approach silver products. It could have significant consequences for the jewellery industry, particularly in terms of labeling requirements and consumer perception.

Aiming for industry consensus

Meanwhile, Huw Daniel emphasized the necessity of striving for a standardized international definition for recycled gold that aligns with responsible sourcing guidelines. Such alignment, he stressed, is vital for consumer protection and international trade.

The congress participants underscored the importance of achieving industry-wide consensus and alignment. They acknowledged the challenges in establishing a unified definition for recycled gold that meets the requirements of all stakeholders. It is believed that such a consensus would lead to the efficient operation of the market while reinforcing responsible Environmental, Social, and Governance (ESG) practices.

Doug Henry concluded the discussions by stating their determination to bridge the gap and create a definition that fulfils industry responsibilities and aligns with market expectations. He expressed optimism about reaching a satisfactory resolution.

The precious metals session at the CIBJO Congress 2023 showcased the industry’s commitment to adapting and aligning with evolving regulatory landscapes while emphasizing responsible practices and market efficiency. Achieving consensus on these vital issues and establishing clear definitions will undoubtedly shape the future of the precious metals industry.

[This article is part of a series of insights from The World Jewellery Confederation (CIBJO) Congress 2023, Jaipur]

Written by Maithili Patange

Retail Jeweller World Exclusive