Before the festive season, the Modi government is once again giving you an opportunity to buy cheap gold. The seventh series of the Sovereign Gold Bond Scheme 2020-21 has started today from October 12. You have the chance to buy gold cheaply from the market rate and it can be purchased till 16 October. Explain that in Sovereign Gold Bond, the investor does not get gold in physical form. It is safer than physical gold.

Gold will be available at the rate of Rs 5,051 per gram

The Reserve Bank of India (RBI) has said in a statement that the issue price of gold bonds has been fixed at Rs 5,051 per gram. “The value of the bond is Rs. 5,051 per gram based on the average closing price of 999 purity gold for the last three trading days of the previous week from the subscription period,” RBI said in a statement. The statement further said that the government, in consultation with RBI, has decided to give a discount of Rs 50 per gram to investors applying online and making payments through digital means. The central bank said, “The gold bond price for such investors will be Rs. 5,001 per gram.”

The eighth episode of the Sovereign Gold Bond Scheme (SGB) 2020-21 series will open for subscription from November 9 to 13. RBI is issuing Sovereign Gold Bond 2020-21 on behalf of Government of India. 

You can buy gold from one gram to four kilograms

Where and how to get

In the Sovereign Gold Bond Scheme, a person can buy up to 400 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 banned 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).

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. If you talk about redemptions, you can redeem it anytime after five years.

Investors trust on gold ETFs

Investors’ confidence in gold ETFs remains. It has invested in it for the sixth consecutive month in the midst of the Corona crisis. According to the data, investors invested Rs 597 crore in September. 908 crore was invested in August also. Talking about this year, an investment of Rs 5,957 crore has been made so far in this gold ETF. Experts say that investor confidence has increased due to recent returns in Gold ETFs.


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