The Modi government is once again selling cheaper gold between October 12 and 16. Investors get the benefit of increasing the price of this gold in the form of Sovereign Gold Bond, along with a guaranteed fixed interest of 2.5 percent on the investment amount. The Sovereign Gold Bond Scheme was launched in 2015 with the objective of reducing the demand for physical gold and transferring a portion of domestic savings to financial savings. The Sovereign Gold Bond Scheme was first launched by the Government of India on 30 October 2015. The Sovereign Gold Bond Scheme has been 40 trenches so far.

Those who would have invested in this bond five years ago have now doubled the amount. On 30 November 2015, the government issued sovereign gold bonds at the rate of Rs 2684 per gram i.e. Rs 26840 per 10 grams. Although its maturity will be completed on 30 November 2023, but investors can withdraw money from 30 November 2020. When compared to the price of bonds opening today for subscription, the amount of investors investing five years ago has doubled. The price of gold received from October 12 to 16 has been fixed at Rs 5,051 per gram.

Also read: Crisis: Gold is ending from the earth, now only this is left

The Modi government has once again brought bonds in the form of the seventh series. This bond has come when the price of gold has fallen from Rs 56000 per 10 gram to around 51000. Sovereign gold bonds are issued by the Reserve Bank of India (RBI) on behalf of the government. The government will issue sovereign gold bonds in a total of six series from October 2020 to March 2021 for the financial year 2020-21.

Series 2020-21Subscription durationIssue date
Seventh12 to 16 October 202020 October 2020
Eighth9 to 13 November 202018 November 2020
Ninth28 January 2020 to 1 January 20215 January 2021
Tenth11 to 15 January 202119 January 2021
11th1 to 5 February 202109 January 2021
12th01 to 05 March 20219 March 2021

Where to buy

Investor PAN is required with every SGB application. All Commercial Banks (except RRBs, Small Finance Banks and Payments Banks), Post Offices, Stock Holding Corporation of India Limited (SHCIL), National Stock Exchange of India Limited and Bombay Stock Exchange or through direct agents to receive applications and customers All services are authorized to be provided. 

What is sovereign gold bond

In Sovereign Gold Bonds, the investor does not get gold in physical form. It is safer than physical gold. As far as purity is concerned, its accuracy cannot be doubted due to its 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. The duration of these bonds is 8 years. If you talk about redemptions, you can redeem it anytime after five years.

 

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