Subscription for the fourth series of Sovereign Gold Bond from Reserve Bank of India is opening from July 12. Its price has been fixed at Rs 4807 per gram.
RBI issues bonds on behalf of the Government of India.
Sovereign Gold Bond Scheme: The issue price for the Government Gold Bond Scheme 2021-22 has been kept at Rs 4,807 per gram. It will open for purchase from July 12. The Reserve Bank of India (RBI) said this on Friday. The fourth series of the Government Gold Bond (SGB) Scheme 2021-21 will open for purchase from July 12 to July 16, 2021. According to RBI, “The price of the gold bond has been fixed at Rs 4,807 per gram.”
The Reserve Bank, in consultation with the Government of India, will give a discount of Rs 50 per gram to investors who make online application and pay digitally. According to the RBI, “the issue price for such investors will be Rs 4,757 per gram of gold.” The issue price of the third series gold bond was Rs 4,889 per gram. It was open for purchase from May 31 to June 4, 2021. Earlier, the government had announced that it would issue government gold bonds in six tranches from May 2021 to September 2021. RBI will issue bonds on behalf of the Government of India.
So far Rs 25702 crore has been raised through this
The bonds will be sold through banks (except small finance banks and payments banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognized stock exchanges like National Stock Exchange of India Limited and BSE. A total of Rs 25,702 crore has been raised till the end of March 2021 from the Swarna Bond SGB scheme launched in 2015. The Reserve Bank had issued 12 series of SGBs for a total amount of Rs 16,049 crore (32.35 tonnes) during 2020-21.
Why Invest in Sovereign Gold Bonds?
Sovereign gold bonds are issued by the government at regular intervals. SGBs are issued at the current price of Gold. SGB is invested for eight years. It has a lock-in period of five years. SGB cannot be sold in these five years. But the SGB can be sold after the completion of the lock-in period of five years. If you hold SGB till maturity, there will be no capital gains tax on the investment. You will get interest at the rate of 2.5% per annum on investment in SGB. This interest will be paid on half yearly basis.
How much do you get for selling?
On investment in SGB, the amount of gold paid for, on redemption or premature redemption, the investor gets an amount equal to the market price of the same gold. Redemption means selling SGB. Apart from this, there is also an option to take physical gold in SGB. Buying gold in the form of bonds also reduces the risk and cost of storage. In this, investors are assured that they will get the market price of gold at the time of maturity.
Is there any making charge on Sovereign Gold?
Apart from this, there is no making charge on SGB and there is no worry about accuracy. Investors have to pay making charges when buying gold in the form of jewellery. There is also concern about the purity of gold. To remove the fear of losing, these bonds are kept in Reserve Bank of India (RBI) book or demat mode.
How good is long term investment
Experts say that for investors who intend to hold the bond till maturity, SGB is a better instrument for long-term investment. Sovereign gold bonds can be sold in the secondary market. The secondary market means that the SGB can be sold to other financial institutions rather than from where it is bought.
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