Categories: Business

sovereign gold bond scheme opens, here is all you need to know

Photo: GOOGLE

sovereign gold bond scheme

new Delhi. Everyone likes to buy gold in India. People consider investing in gold the best option to use in times of difficulty. Most of us like to buy physical gold. However, buying gold proves to be costly due to its risk and making charges. In such a situation, the Government of India has given investors a safe and cheap opportunity to buy gold. Which is called Sovereign Gold Bond. Through which you can buy gold from 1 gram to 4 kg and you also get interest on that investment. So if you also want to add gold to your portfolios, then know from our special report that why investing in government gold bonds is a better option?

Due to the economic crisis in the entire world, the stock market is in a volatile environment. But there is a continuous rise in the price of gold. Most investors believe that by the end of this year, gold price can go up to Rs 55000. In such a situation, the government has given investors an opportunity to buy cheap gold through sovereign gold bonds.

Know some special things about gold bondThe

Gold bond is government gold in which you can invest.

Sovereign Gold Bond is issued by the Reserve Bank of India on behalf of the Government of India.

People can buy gold bonds online, through banks, post offices, stock holding corporations of India and stock exchanges such as NSE, BSE

Gold bonds can also be purchased online by visiting the RBI website.

Investor in Sovereign Gold Bond can buy gold from 1 gram to 4 kg in a financial year.

Any person, resident of HUF (Hindu Undivided Family), Trust, Institution, University or Religion Institute can invest in Gold Bond.

Any trust and financial units are allowed to invest up to 20 kg upper limit.

Investor can invest in gold bonds to this extent every year

The government had announced to sell gold bonds in 6 series for this financial year 2020-21. Out of which this is the second phase of buying gold bonds

The government has fixed the price band of 1 gram of gold as per the market price of Rs 4590 per gram.

Anyone can buy and invest in gold under the Sovereign Gold Bond Scheme from 11 May to 15 May 2020.

Purchased gold bonds will be issued to investors on May 28. Gold prices are lower in May than in April of the previous month. Last month was Rs 4639 per gram which has been fixed at Rs 4590 per gram this time.

What are the benefits of buying sovereign gold bondsThe

Research Head of Escorts Securities, Asif Iqbal believes that "Sovereign gold bonds are a good option for those who like to invest in gold." Also, investing in gold bonds will be beneficial for long-term investors. Looking at the market environment in the next 2 to 3 years, there will be a further increase in the prices of gold, which investors are expected to get a definite advantage. Gold asset will benefit due to less investor confidence in other investment options ”.

Facility to invest in at least 1 gram of gold in Sovereign Gold Bond

Physical gold charges other than making charges. However, investing in gold bonds fetches up to 2.50 per cent interest.

Apart from rising gold prices, investors also get fixed interest which is not available in buying physical gold.

Interest is paid to investors in their bank account every 6 months

There is a risk of theft by purchasing physical gold but the gold bond is safe. There is no loss due to government and is considered safe.

Physical delivery of gold bonds is also possible

It is necessary to stay invested for a long period ie 8 years.

Apart from this, the investor can exit after five, six or seventh year.

Gold also likely to rise and fall according to market fluctuations

Investors can also take loans by pledging gold bonds.

Talking about the purity of gold, the purity of 24 carat gold, which is 99 percent pure gold.

Gold bonds are redeemed in cash on maturity

There is no tax on holding of gold bonds till maturity. But tax exemption does not apply on selling before maturity

If the investor sells the gold bond between three years, it is noted in short-term gains and added to the investor's income. The investor has to pay income tax according to his tax slab

Note that the government is giving a rebate of Rs 50 per gram for buying online gold bonds through digital means. Which means that you can buy 4590 per gram gold bond for Rs 4540 per gram. Buying online is a cheap deal for investors

If investors fail to buy gold bonds in May phase, they can buy in 4 more stages. The remaining stages of buying the remaining gold bonds are as follows:

Third phase: June 8 to June 12, 2020, investors will be issued on June 16, 2020

4th stage: Between July 6 to July 10, 2020, issue July 14, 2020

Fifth stage: 3 August to 7 August 2020. Will issue on 11 August 2020

Sixth phase: 31 August to 4 September 2020. Investors will be issued on 8 September 2020

The risk in gold bonds is much lower than the rest of the asset class. But, before making any investment or making changes in your portfolio, do get information from your investment advisor.

This post was published on May 12, 2020 8:52 pm

Content Team

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