The Modi government is once again giving you the opportunity to buy cheap gold. This year will be the last chance for you. Government-issued sovereign gold bonds can be subscribed between August 31 and September 4. Its installment will be released on 8 September. In Sovereign Gold Bonds, the investor does not get physical gold. It is safer than physical gold.
Learn 10 important things related to Sovereign Bond ..
1. Modi government is bringing gold bond for the sixth and last time this year. That too when domestic prices are reaching new heights. The gold, which has reached a record above Rs 56000 per 10 gram, is going down for the last several days. Despite this, experts believe that by Diwali it can reach 64000 to 82000 rupees.
2. Sovereign gold bonds are issued by the Reserve Bank of India (RBI) on behalf of the government. The Sovereign Gold Bond Scheme was launched in 2015 with the aim of reducing the demand for physical gold and transferring a portion of domestic savings to financial savings.
3. The issue price of Sovereign Gold Bonds is determined by the India Bullion and Jewelers Association based on the latest closing price for 999 purity gold.
4. In the Sovereign Gold Bond Scheme, a person can buy up to 500 grams of gold bonds in a financial year. There is a minimum investment of one gram.
5. The issuance date for this installment of gold bonds has been set between 31 August and 4 September.
6. Bonds are subject to liquidity on stock exchanges within a fortnight of issue.
7. The Reserve Bank of India (RBI) announced in April that the government would issue sovereign gold bonds in six trenches by September.
8. The most important thing about this is that the investor gets the benefit of increasing the price of gold, along with the guaranteed fixed interest of 2.5 percent on the investment amount.
9. The duration of these bonds is 8 years and premature withdrawal can be done only after the 5th year.
10. It will be subject to long term capital gains tax after three years (Capital gains tax will not be levied till maturity) while you can use it for loan.
At what price will you get gold
The Reserve Bank of India said in a statement on Friday that this time the price of gold bond has been kept at Rs 5,117 per gram. For the current series, it has been calculated at an average closing price of Rs 5,117 per gram from 26 August to 28 August 2020. Digital payment for purchase of gold bonds will get a rebate of Rs 50 per gram. The bond price for such investors will be Rs 5,067 per gram.
Where and how to get
In the Sovereign Gold Bond Scheme, a person can buy up to 500 grams of gold bonds in a financial year. There is a minimum investment of one gram. You can save tax by investing in this scheme. Bonds will be restricted for sale to trustee individuals, HUFs, trusts, universities and charitable institutions. The maximum subscription limit will be 4 kg per person, 4 kg for HUF and 20 kg for trusts and the same per financial year (April-March).
On purchasing it online, it will get a discount of Rs 50 per gram or Rs 500 per 10 gram. SGB will be sold through banks (excluding small finance banks and payment banks), stock holding corporation of India (SHCIL), designated post offices and recognized stock exchanges (NSE and BSE).
What is Sovereign Gold Bond
In Sovereign Gold Bonds, the investor does not get physical gold. It is safer than physical gold. As far as purity is concerned, its accuracy cannot be doubted due to being in electronic form. It will be subject to long term capital gains tax after three years (Capital gains tax will not be levied till maturity) while you can use it for loan. If you talk about redemptions, you can redeem it anytime after five years.