This Article is From Aug 28, 2020

5 Days To Invest In Gold Bond Scheme 2020-21: All You Need To Know

Typically, gold shares an inverse relationship with equities, and the safe-haven appeal of the precious metal rises with any sign of increased risk in equities.

5 Days To Invest In Gold Bond Scheme 2020-21: All You Need To Know

The Sovereign Gold Bond programme is aimed at curbing the import of the yellow metal

Sovereign Gold Bond Scheme 2020-21: The Sovereign Gold Bond scheme will be available for subscription for the final five days of this year. On Monday, the government-run gold bond scheme will open for subscription for a period of five days till September 4. That means the gold bonds will be no longer available until next financial year. This will be the sixth tranche of the Sovereign Gold Bond (SGB) 2020-21 programme, subscription under which first opened in April this year. (Track Current Gold Rates Here)

Wealth planners say Sovereign Gold Bonds are an effective way to invest in non-physical gold. 

Here are few important details to know about this government-run gold bond scheme:

What is the Sovereign Gold Bond (SGB) programme?

The Sovereign Gold Bond programme, first launched in 2015, is a government-run scheme aimed at curbing the import of the yellow metal. Under this scheme, the Reserve Bank of India issues bonds linked to the market value of gold on behalf of Government of India. Gold bonds provide a slew of benefits over physical gold, such as additional annual return of 2.5 per cent. (Also Read: Gold's "Dream Run" May Continue, Say Analysts

Price of Sovereign Gold Bonds

The issue price is calculated based on a simple average of spot rates provided by Mumbai-based industry body India Bullion and Jewellers Association (IBJA). 

Who Can Buy Gold Bonds

Entities such as Resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions can purchase gold bonds under the scheme. However, there are some investment limits applicable to each category. 

Investment Limits

Eligible individuals and HUFs can purchase a minimum of one gram and maximum of four kilograms of gold in a financial year. Entities such as trusts can purchase up to 20 kilograms in a financial year.

Where To Buy Gold Bonds

Eligible entities can purchase the gold bonds from designated post offices, stock exchanges BSE and NSE, and the Stock Holding Corporation. 


A discount of Rs 50 per gram is available for online subscribers, aimed at promoting digital payments.