Government Gold Bond To Be Launched: What You Need To Know
To cash in on the surge in buying gold during the festive season, the government will launch the next tranche of sovereign gold bond (SGB) scheme, the second in 2017-18, tomorrow (October 9). The bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges namely the NSE and BSE, the finance ministry said in a statement. The SBG offers an alternative to owning gold in the physical form, which eliminates the risks and costs of storage.
According to State Bank of India, investors are assured of the market value of gold at the time of maturity and periodical interest with scheme. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in Demat form eliminating risk of loss of scrip etc.