What is the sovereign gold bonds scheme and how to invest in this scheme

What is the sovereign gold bonds scheme and how to invest in this scheme

There is a good chance for those who want to invest in gold. The government is giving people a chance to buy gold cheaply. Investors can invest in gold under the Sovereign Gold Bonds Scheme. The scheme is getting an opportunity to invest in gold from 31st August. This opportunity has come at a time when the price of gold has fallen from a record high of about 5000 rupees. The Reserve Bank of India (RBI) is launching the sixth phase of the sovereign gold bond scheme on 31st August, which will be invested by 4th September. For this, the RBI has kept a price of Rs. 5,117 per gram.

A rebate of Rs. 50 per gram will also be given on application and payment through digital means. The effective price under the bond for such investors will be Rs 5,067 per gram. The new series of gold bonds will be issued on 8th September. The smallest bond under the scheme will be equal to one gram of gold. Any investor can buy gold bonds equivalent to a maximum of 500 grams in a financial year. By and large, the limit for individual bond-buying is four kilograms. In case of trust or organization, the limit has been fixed at 20 kilograms.

Find out what is sovereign gold bond:

The government had launched the scheme in November 2015 to reduce the demand for physical gold. Investors here get a chance to invest money in gold, but investors do not need to keep gold in physical form. The scheme allows investors to invest in gold per unit, priced at the market price of gold. It can be redeemed in cash when the bond is sure. Simultaneously, one of the main benefits is that the gold bond also receives interest at an annual rate of 2.5 percent.

Who can invest in this scheme: 

In the sovereign Gold Bond scheme, Indian citizens, Hindu undivided families, trusts, universities, and charitable institutes can buy gold bonds. Here, the sovereign gold bond is issued for eight years. After the fifth year, the investor gets the option to exit the bond scheme. This gold bond is sold by commercial banks, stock holding corporations, post offices, and stock exchanges BSE and NSE.

Benefits of sovereign gold bond scheme

If you want to invest in gold, a gold bond is the best option. Under this scheme, investors buy 999 quality gold bonds. In this way, high-quality gold is purchased by the customer. Also, to keep physical gold, the customer has to spend on lockers, etc. However, the gold bond is highly secure without any expense. When customers go to sell gold bonds, no making charge, etc., is deducted.

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