Sovereign Gold Bond Scheme 2024: The next tranche of Sovereign Gold Bond (SGB) opened for subscription from February 12 (Monday) at an issue price of Rs 6,263 per gram. Sovereign Gold Bond Scheme 2023-24 – Series IV will be open for subscription for five days until 16 February 2024, as per Reserve Bank of India (RBI).
As per RBI, investors making payment through online mode will receive a discount of Rs 50 per gram, reducing the issue price at Rs 6,213. Investors will have multiple options to sell their Sovereign Gold Bonds through scheduled commercial banks, post offices, and stock exchanges.
Investors will be issued RBGs on Wednesday, February 21, 2024.
SGB is considered a medium to long-time investment with a tenor of eight years. SBG investors, however, have the option to choose for premature redemption after the fifth year. Interest is paid at a fixed rate of 2.50 per cent per annum which adds to its popularity against physical gold. Investors receive payments every six months with profits made on SBG redemption are fully tax-free.
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Over the past few years, SGBs have become preferred options for many owing to the fact that there is no hassle involved in storing digital golds. Also, in the case of SBGs, owners don’t need to pay charges for storing and maintaining gold.
However, this investment involves monetary risks if gold prices fall in future.
“The quantity of gold for which the investor pays are protected since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. 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 demat form eliminating risk of loss of scrip etc,” RBI’s website says highlighting the benefits of SGBs over physical gold.
SGB’s are issued in denominations of one gram of gold. The minimum investment in the SGB allowed by any individual is one gram with a maximum limit of subscription of 4 kg for individuals and Hindu Undivided Family (HUF). Trusts are allowed a maximum subscription of 20 kg.
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The last tranche of online security – SGB Scheme 2023-2024 Series III – was launched by the central bank on December 18-22, 2023, with an issue price of 6,199 per gram of gold with a Rs 50 discount on online payments.
