Investing in gold has become more affordable as the government has announced the issuance of two tranches of Sovereign Gold Bond (SGB) scheme in the first half of the current financial year. The first tranche, SGB Scheme 2023-24, will be available from June 19-23, while the second tranche will be available from September 11-15. Here are the key features of the scheme:
What is SGB Scheme?
SGB Scheme is a special initiative launched by the government to reduce the physical demand for gold. It was first launched in November 2015 to allow investors to invest in gold at a lower price than the market rate. The government guarantees the safety of the investment made under this scheme.
How is the issue price determined?
The issue price of the SGB scheme is determined by the closing price of 999 purity gold, as published by the Indian Bullion and Jewellers Association Limited (IBJA). The gold bond’s price is determined based on the simple average of the closing price of 999 purity gold for the last three working days of the week preceding the subscription period.
Discount on online purchase
Investors who apply for SGB through online mode and make payment digitally are eligible for an additional discount. As per the scheme’s rules, online investors get a discount of Rs 50 per gram on the nominal value.
Where to buy SGB from?
SGBs are issued by the Reserve Bank of India (RBI) on behalf of the Indian government. These bonds are sold through banks (excluding small finance banks and payment banks), the Stock Holding Corporation of India Limited, nominated post offices, and recognized stock exchanges such as the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited (BSE).
Investment limit and maturity period
Under the SGB scheme, an individual can buy a maximum of 500 grams of gold bonds in a financial year, while the minimum investment is one gram of gold. In a single financial year, an investor can buy up to 4 kg of gold bonds under the scheme, while the limit is 20 kg for Hindu Undivided Families (HUFs) and trusts. The joint holding limit is 4 kg, which applies to the first applicant only. The maturity period for the SGB scheme is eight years, but investors can exit the scheme after five years.
Conclusion
The SGB scheme is an excellent investment option for those who want to invest in gold and earn returns on their investment. The scheme not only offers discounts on online purchases but also guarantees the safety of the investment. Moreover, investors can exit the scheme after five years and sell their gold bonds at the prevailing market rate
Follow DelhiBreakings on Google News
Superfast News Coverage by DelhiBreakings.com team.
For Superfast national news and Delhi Breaking Stories visit us daily at https://delhibreakings.com