new Delhi. The fifth series of sovereign gold bonds has benefited from a surge in investment demand for gold amid the Corona crisis. Indians subscribed for bonds worth Rs 3387 crore in this series. By volume, 6.35 tonnes of gold was invested through the series. This has been the highest price or volume in any series of gold bonds so far.
The issue price of gold bonds in the fifth series was Rs 5334 per 10 grams, which was 10 per cent higher than the fourth series. However, due to the rising glut of gold and the economic uncertainty due to the Corona crisis, investors bought bonds fiercely. In the last 5 years, the Reserve Bank has issued more than 48 tonnes of gold equivalent bonds. The government had run this scheme so that gold imports in India could be limited. However, this time due to the Coron crisis and lockdown, gold imports have fallen to record levels. Gold imports in the June quarter have fallen 95 percent over the previous year. However, due to the rise in gold prices, its investment demand is seeing a boom. Gold ETFs have also seen an increase during the Coron period.
SGB i.e. sovereign gold bond is a government security issued based on the amount of gold in grams. Actually, it is a better option to invest in solid gold because it is easier to keep and is also safer than solid gold. The Reserve Bank issues this bond on behalf of the government.
Gold bond gives you two advantages. You can invest in gold through this, while in this you also get a fixed interest on the issue price. The interest rate for this year is 2.5 percent. That is, on redeeming the bond, you get both the money and the interest on the issue price based on the gold price at that time. The Reserve Bank is issuing gold bonds in 6 series this year. Subscriptions will be sought for the sixth series in September after the fifth series in August. Subscriptions will open from August 31 to September 4 and bonds will be issued on September 8.
This post was published on August 19, 2020 7:31 pm
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