The Sovereign Gold Bond Series is now available: 1 gramme of gold costs Rs. 5,873, and the deadline for investments is September 15

The Sovereign Gold Bond Scheme (SGBs) 2023–24 second series went on sale today, or on September 11. You have till September 15 to invest in this

This time, the cost of gold per gramme has been set at Rs 5,923. This is an investment that may be done both online and offline.

You save Rs 50 when you apply online, thus the price per gramme will be Rs 5,873. You can invest in 24 carat gold, or 99.9% pure gold, with a sovereign gold bond.

Sovereign Gold Bond: What Is It?

A government bond is a sovereign gold bond. It is transformable into demat. The price of the bond will be equal to the cost of five grammes of gold if the bond is made of that amount of gold. The RBI has issued it.

Purchase of 24 carat, or 99.9% pure, gold

You can invest in 24 carat gold, or 99.9% pure gold, with a sovereign gold bond. SGB investments yield an annual interest rate of 2.50%. A loan may also be obtained against the bond if funds are required.

The bond’s price is determined by the announced rate of the Indian Bullion and Jewellers Association Limited, or IBJA. The average of the rates from the last three days of the week preceding the subscription term is calculated in this case.

There are no concerns about purity or safety.

There is no need to be concerned about SGB accuracy. The price of gold bonds is tied to the price of 24 carat purity gold reported by the Indian Bullion and Jewellers Association (IBJA), according to the National Stock Exchange (NSE). Along with this, it can be held in the form of demat, which is quite safe and does not cost anything.

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Maximum gold investment is 4 kilogramme.

A individual may invest up to 4 kilogrammes of gold using SGBs during the course of a fiscal year. The investment cap of 4 kg will only apply to the first applicant in a joint owning situation. While 20 kg is the maximum weight that each trust may purchase.

When selling bonds before eight years, tax is due.

The Sovereign currency has an 8-year maturity period. There is no tax on the earnings earned from it after the maturity period has passed. However, if you remove your money after five years, the profit you made would be subject to Long Term Capital Gain (LTCG) taxes, which are levied at a rate of 20.80%.

The RBI has provided numerous choices for investment in it, and you can also invest offline. Through bank branches, post offices, stock exchanges, and the Stock Holding Corporation of India (SHCIL), investments can be made. An application form must be filled out by the investor. These bonds will then be transferred to your demat account after money has been deducted from your account.

PAN is required in order to invest. All banks, Stock Holding Corporation of India Limited (SHCIL), and reputable stock exchanges National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) will participate in the sale of these bonds.

In 7 years, it returned 120%.

The price per gramme was Rs 2,684 when the Sovereign Gold Bond Scheme was established in 2015-16. There was a Rs 50 discount on this. That is, the price had increased to Rs 2,634. The recently announced series of Sovereign Gold Bonds costs Rs 5,923. This price has now dropped to Rs 5,873 after a Rs 50 rebate. In this manner, this programme has provided returns of approximately 120% over the last 7 years.

How about making a purchase?

Ajay Kedia, Director of Kedia Commodity, advises long-term gold investments since they will not be impacted by market volatility and will provide the desired profits. For at least three to five years, it would be beneficial to earn returns in gold. By June 2025, it might cost Rs 65,000 per year and Rs 75,000 for 10 grammes.