How is investing in Gold ETF better than jewellery?
What is the right way to invest in gold? Why should you not invest in gold jewellery? What is the benefit of investing in Gold ETF? What should be the share of gold in the portfolio?
The new series of Sovereign Gold Bonds (Sovereign Gold Bond) has been opened from Monday. If you also want to invest in this government scheme, you can invest in this installment from today, June 19, until June 23, 2023. That means you have a great opportunity to buy cheaper gold for the next 5 days.
The scheme is issued by the Reserve Bank of India. You can invest safely in it because it comes with a guarantee of security provided by the Government of India. You can purchase gold at a price lower than the market price through this scheme. Let’s know the details of this phase, including the issue price.
What is the bond price?
According to the press release issued by RBI, the issue price of the gold bond under this installment has been fixed at Rs. 5,926 per gram. The issue price of the Sovereign Gold Bond scheme, including the subscription period, is determined based on the average of the closing price of gold of .999 purity for the last three business days preceding the subscription period.
Extra discount is available here
According to the information given by the Reserve Bank, if you apply online for this issue, you will get an additional benefit of Rs 50 per gram. That means the issue price for these investors is Rs 5,876 per gram.
2.50% return on SGB
Under this special scheme, investors receive a fixed interest rate of 2.50% annually. The maturity of this scheme is eight years. However, you can sell it even in the fifth year if you wish. RBI has stated that the second series of the Sovereign Gold Bond scheme for 2023-24 will be issued in September.
How is the payment made?
For buying these bonds of a value up to Rs 20,000, you can make a cash payment. But for payments exceeding this amount, you will have to use a cheque, demand draft, or electronic banking.
Where to buy the gold bond?
If you also want to invest in it, you can purchase Sovereign Gold Bonds from all banks. Apart from this, you can buy it through the National Stock Exchange of India Limited, the Bombay Stock Exchange Limited, the Clearing Corporation of India Limited (CCIL), and the Stock Holding Corporation of India Limited (SHCIL). The facility to invest in gold bonds is being provided in major post office branches.
How much gold can you buy?
Under the Sovereign Gold Bond (How to Invest In Sovereign Gold Bond) scheme, you will have to invest at least one gram of gold, while you can purchase a maximum of four kilograms of gold individually. Investment can be made in the name of the trust for up to 20 kilograms of gold. RBI has stated that the second series of the Sovereign Gold Bond scheme for 2023-24 will be issued in September.