Sovereign Gold Bond: Series XI of the Sovereign Gold Bond scheme is open for subscription till tomorrow, February 5. The Government-run gold bonds, linked to the market price of gold and offers additional returns, are one of the few options to invest in the yellow metal in a non-physical form. After this series, the gold bond scheme will be available for subscription, one more time in March 2021. For the eleventh installment of the gold bond scheme, an issue price of ₹ 4,912 per unit, equivalent to the value of one gram of gold, is applicable, according to the Reserve Bank of India. (Also Read: Sovereign Gold Bonds To Open For Subscription Soon: What You Need To Know )
Here's all you need to know about the Sovereign Gold Bond scheme, which is available till February 5:
The eleventh tranche of the gold bonds opened for five days starting February 1. The scheme, wherein the central bank issues gold price-linked bonds on behalf of the government, was first launched in 2015, to curb the import of the precious metal.
The gold bond scheme is open to resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions, subject to investment limits. The gold bonds can be purchased from the designated post office branches, stock exchanges BSE and NSE, as well as the Stock Holding Corporation. (Also Read: How To Buy Sovereign Gold Bonds)
Should You Buy?
''The 11th tranche of SGB is priced at Rs 4912/gm with a discount of Rs 50/gm for online investors. Investment in SGB is most seamless and cost-efficient for investors looking to take exposure in Gold. After a stellar performance in 2020, gold prices have been trading in the range of ₹ 48,000-Rs 52,000 range in the past 3 months. Gold is headed for a decline in value for the month of January. Gold prices have been under pressure due to the rise in US treasury yield and subdued buying activity by Gold ETF investors,'' said Mr. Nish Bhatt, Founder and CEO, Millwood Kane International - an investment consulting firm.
Each gold bond (equivalent to one gram of gold) is priced at ₹ 4,912 under the eleventh installment, according to the RBI. The rate is arrived at on the basis of the spot prices provided by the Mumbai-based India Bullion and Jewellers Association (IBJA).
A discount of ₹ 50 per unit or per gram, is applicable for those investing in the gold bonds online, and the payment against the application is made by any of the digital modes. For such online subscribers, the issue price of the gold price will be ₹ 4,862 per gram of gold. (Also Read: Here Is How Sovereign Gold Bond Price Is Calculated)