Sovereign Gold Bond Scheme: Why you should invest

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The Sovereign Gold Bond Scheme 2021-22 – Series V has opened today for the subscription. The fifth tranche will remain open for subscription till August 13. The finance ministry has fixed the issue price of the bond during the subscription period at Rs 4,790/gm. Investors can avail of a discount of Rs 50/gm if they are applying online and making digital payments.

In November 2015, the scheme was launched with an objective to reduce the demand for physical gold and shift a part of the domestic savings into financial savings.

Money9 has exclusively listed out reasons why investors should consider investing in sovereign gold bond schemes.

Reason 1: Investors need not buy it from jewellers or any retailers they can directly buy it from the centre. The bond is issued by the Reserve Bank of India (RBI) on behalf of the government.

Reason 2: Over the years, on each unit, investors will gain interest from RBI. The Reserve Bank will pay the prevailing value of gold at the time of maturity and a 2.5% interest is payable half-yearly.

Reason 3: There is no additional purity or making charge costs. They are secure, hassle-free, and don’t need storage space, unlike physical gold.