Gold Sovereign Bond (SGBs): There is good news for investors in gold. Gold has become nearly Rs 5000 cheaper than its record high. In August itself, gold made an all-time high of 56200 on MCX. At the same time, now it has come close to 51000. At the same time, at a time when gold has come at a discount of 5000 rupees, from August 31, the government is bringing the sixth series of gold bonds for this financial year. Experts are also now considering the best time to invest in gold bonds. He says that 2.5 percent annual interest in gold bonds makes it attractive while reducing the risk of its fluctuations.
Gold cheaper than the market price
The price has not yet been decided for the sixth series of gold bonds in the current financial year, but it is less than the average market price. At the same time, an additional discount of 500 rupees is also available on every 10 grams by purchasing online. In such a situation, the full benefit of the fall in gold can be availed by investing through gold bonds.
Why the best time to invest
Ajay Kedia, director of Kedia Advisory, says that if we talk about the present time, this series of gold bonds is going to open at a very good time. Sona has become quite disconcerted from her high in the market. The current price balance is visible. In such a situation, investors must keep 8-10% gold in their portfolio. Its best quality is that it also gets interest at the rate of 2.5 percent per annum. At the same time, it is supported by the central government. They say that factors like uncertainty in the economy, weakness of the dollar and geopolitical tension exist, due to which the boom in gold is yet to continue.
Investment opportunity by 4 September
Sovereign Gold Bond will open for investment from 31 August. You can invest in it till 4 September. The bond will be issued on 8 September. The smallest bond under this scheme will be equal to 1 gram of gold. A person can buy a bond of maximum of 500 grams of gold in a financial year. Overall, the limit for buying bonds individually is 4 kg, while 20 kg has been set for the trust or organization.
Long term returns
Anuj Gupta, deputy vice president (commodity and currency), Angel Broking, says that if we look at the return history of gold, it has given investors better and stable returns in the long term. Gold prices will also increase in the long term, in this case the returns of gold bonds will be better. At the same time, there will be an additional interest benefit of 2.5 per cent per annum. At the same time, these bonds are tax free on maturity.
10 unique quality of the gold bond
- Its most unique quality is that in addition to increase in gold prices, you also get additional interest at the rate of 2.5 percent.
- It is tax free on maturity.
- The expense ratio is nothing.
- Being supported by the Indian government, there is no risk of default.
- It is easier and safer to manage than physical gold.
- It has easy exit options.
- Against gold bond facility.
- It is also a better option for HNIs, where it does not have to pay capital gains tax to hold till maturity. Equity attracts 10% capital gains tax.
- There is no hassle of purity in this and prices are decided on the basis of pure gold.
- Talking about the last 10 years or 15 years, gold has consistently given good returns.
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