Categories: Business

Next tranche of gold bond opens on Aug 31, issue price at Rs 5,117 per gram | Modi government is giving a chance to earn big profits by buying cheap gold, sale will start on August 31 at this price

Photo: ECONOMIC TIMES

Next tranche of gold bond opens on Aug 31, issue price at Rs 5,117 per gram

new Delhi. RBI has fixed a price of Rs 5,117 per gram for the sixth installment of the Sovereign Gold Bond Scheme (Sovereign Gold Bond Scheme). The Sovereign Gold Bond Scheme will open for the 2020-21 series VI subscription on August 31, 2020 and will close on September 4, 2020. In the fifth installment, the issue price for the bond was Rs 5,334 per gram. The fifth installment opened on 3 August and closed on 7 August.

The RBI said in its statement that the value of the gold bond is based on the average closing price of gold with 99.9 percent purity in the last three trading days of the week before the week it is presented. For the current series, this calculation has been fixed at Rs 5,117 per gram at an average closing price of 26 August to 28 August 2020.

With the consent of RBI, the government has decided to give a discount of Rs 50 per gram to digital paying consumers for applying online and purchasing bonds. The bond price for such investors will be Rs 5,067 per gram. Government guaranteed gold bonds are issued by the Reserve Bank of India.

The government introduced this scheme in November 2015 to reduce gold imports in the country and reduce its physical demand. The bond can be purchased in one gram unit and its maturity period is 8 years with exit option after five years. Only Indian individuals, Hindu undivided families, trusts, universities and social institutions can invest in these bonds.

With a minimum investment of one gram gold bond in a financial year, the maximum limit is 4 kg for individuals and HUF and 20 kg for trust. In the financial year 2019-20, the Reserve Bank issued gold bonds worth Rs 2,316.37 crore i.e. 6.13 tonnes in ten installments.

Gold bonds will be sold through banks, stock holding corporations of India, notified post offices and stock exchanges (NSE and BSE). According to the RBI annual report 2019-20, since its launch in November 2015, the Sovereign Gold Bond Scheme has raised a total of Rs 9,652.78 crore by selling bonds for 30.98 tonnes of gold in 37 installments.

This post was published on August 29, 2020 11:29 am

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