By : Dheeraj Upadhyay
The yellow metal (Gold) is known as the safe– haven asset since ages due to its steady returns it provided even in pandemic like situations. If you wish to buy gold or invest but feel left out or scared of going out in the pandemic then here’s the good news for you- Now buy genuine gold from the comfort of your home through RBI’s Sovereign Gold Bond (SGB) Scheme 2021 subscription, second tranche opening from May 24 – May 28 at subscription price of Rs 4,842 per gram.
Gold prices in India are currently hovering around Rs. 48,000- 50,000 per 10 gram in this month of May. Gold has given stellar returns in last year and in 2021 too gold prices are expected to reach around 60,000 per 10 gram. Gold’s glitter likely to continue in 2021 and it can give returns of about 25% owing to negative interests and depreciating dollar in the covid induced slowdown across the world.
The Sovereign Gold Bond Scheme (SGB) 2021-Series 2nd tranche, issued by the Reserve Bank of India (RBI) on behalf of the federal government, shall be open for subscription from May 24- May 28.
According to RBI the prices of SGB scheme is decided through the simple average closing price of gold of 999 purity for last three business days of the week preceding before the subscription day, sourced from India Bullion and Jewellers Association Ltd (IBJA), which for this tranche the price comes out to be Rs. 4,842 per gram.
Along with the satisfaction of buying genuine gold one will also get Rs.50 per gram flat discount for buying it online.
As per the RBI, the issue price of the gold bond will be become Rs 4,792 per gram for the online buyers.
The RBI had introduced the Sovereign Gold Bonds (SGBs), as part of the Centre’s market-borrowing program through six SGB tranches starting 17 May.
The most important points to look in the Sovereign Gold Bonds Scheme (SGB)
The bonds are denominated in multiples of 1 gram(s) of gold with a basic unit of 1 gram each.
SGB Gold bonds also give an annual interest rate of 2.50% to investors with no capital gains at maturity.
The tenure of each gold bond are of eight years with an exit option starting after the fifth year.
The bonds are only for resident individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable establishments.
According to the RBI the minimal allocation for an individual’s under the SGB gold bonds is 1 gram to 1 kg gold and the maximum subscription limit is 4kg allowed to HUF and 20kg for trusts and comparable entities per fiscal (April-March).
The sovereign gold bond subscriptions are offered through banks (besides small finance banks), Stock Holding Corporation of India (SHCIL), designated workplaces, and recognized stock exchanges (NSE and BSE). Govt of India with RBI launched the Sovereign Gold Bond Scheme in 2015 with an aim to regulate the demand for physical gold and to shift the part of household financial savings from gold to financial savings.