How To Invest In Sovereign Gold Bond Scheme

A fifth instalment of the government's Sovereign Gold Bond (SGB) programme for the current financial year is available for subscription till Friday, August 7. The gold bonds - issued by the Reserve Bank of India on behalf of Government of India - will be available for five more days after the current tranche, from August 21 to September 4. Gold prices have broken a series of records over the past few weeks. The government's Sovereign Gold Bond programme is aimed at restricting gold imports for the country, which is the world's second largest consumer of the yellow metal.

Wealth planners say gold bonds are an effective way to take positions in non-physical gold, as the rates of the yellow metal are set to appreciate further in the near term. 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. 

Here's how to invest in the government-run gold bond programme:

Eligible parties can purchase the gold bonds from designated post offices, stock exchanges BSE and NSE, and the Stock Holding Corporation. (Also Read: Gold's "Dream Run" May Continue, Say Analysts)

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

Other Key Details

Gold bond Series V issue price

An issue price of Rs 5,334 per gram is applicable to the current series of the Sovereign Gold Bond scheme. (Track Current Gold Rates Here)

Who can buy

Resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions can park their funds in gold bonds, subject to investment limits. (Also Read: How To Buy Sovereign Gold Bonds)

Investment limit

A minimum of one gram and a maximum of four kilograms of gold can be acquired by eligible individuals and HUFs in a financial year. Trusts and similar entities can purchase up to 20 kilograms in a financial year.