Don't lose this year's last chance to get paid for buying gold
Possibly, the only win-win investment available
The Sovereign Gold Bonds scheme by the Indian government offers an alternative to investing in physical gold.
Managed by the Reserve Bank of India, the program aims to convert idle household and institutional gold into productive assets.
These bonds are valued in grams of gold, and the Gold Reserve Fund manages any price fluctuation risks.
The government utilizes this fund at a 2.5% annual interest rate, which is also the rate paid to bondholders
Sovereign Gold Bond Scheme 2023-24 Series IV Tranche II
The 2022-23 Series IV Tranche II bonds are open now until September 15 for subscription.
Details of SGB 2023-24 Series IV Tranche II
- Issue date: September 11-15, 2023
- Issue price: Online-Rs 5,873/gm, Offline-Rs 5,923/gm
- Maturity: 8 years; exit possible after 5th year
- Redemption price: Average closing price of 999-purity gold over the preceding three days.
- Interest rate: 2.5% annual; paid semi-annually.
Why should you buy the SGBs?
Your gold quantity, as represented by the bond, stays secure throughout its eight-year lifespan.
When you cash it in at term-end or early (starting year five), you get the going gold rate.
But wait, there's more! A 2.5% annual interest gets tacked onto your bond's value.
Say goodbye to the hassle of storing physical gold; these bonds nix risks and storage fees.
You're also guaranteed the current market rate and prompt interest payouts.
Don't sweat over making charges or purity doubts you'd normally face with gold jewellery.
Plus, you are improving your green quotient. You are also doing Mother Earth a solid service.
These bonds eliminate the need for new gold mining, easing environmental strain and steering you toward sustainable investing.
These bonds can also be offered as collateral for loans, should you need one.
Where can one buy the SGBs?
You can buy these bonds through registered brokers, designated banks and post offices, and certain corporations.
Previous series are traded on the NSE and BSE and can be bought from registered brokers
How much gold can I buy via the SGBS?
The smallest investment kicks off at just one gram of gold. Individual and Hindu Undivided Family investors have a cap of 4 kg.
Select trusts and government bodies can go up to 20 kg.
Sensible Investing
Sovereign Gold Bonds represent the #sensibleinvesting approach that we at www.bondbazaar.com are advocating.
Buying physical gold entails physical risk, storage charges, making charges and GST if bought as jewellery.
All these factors increase your acquisition cost.
Buying SGBs sidesteps all these concerns and is as pure as bullion. And you also get paid for buying them.
Why look anywhere else?
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