Buy gold at Rs 520 discount

You can buy gold at a discount of Rs 520/10 gram from the government. GoI is selling gold at the price of Rs 5,873/gram from Monday, September 11, 2023. To encourage citizens to stop buying physical gold, the Reserve Bank of India (RBI) on behalf of the GoI issues sovereign gold bonds. You can buy gold at this price in the form of these sovereign gold bonds. RBI has opened the subscription window for second tranche of the Sovereign Gold Bond 2023-24.

The RBI has fixed the issue price of the gold bond of the denomination of one gram at Rs 5,923. Plus, those who subscribe to such gold bonds via online channels get Rs 50 discount. This brings down the final issue price of the bond of denomination of one gram of the yellow metal  to Rs 5,873.

On Monday, September 11, 2023, price of one gram of gold was Rs 5,925. But citizens can subscribe to the gold bond available under the scheme in denomination of one gram of the yellow metal at lower price of just Rs 5,873. So, one would save Rs 52 on investment in every gram of the yellow metal if one buys the gold bonds. One can subscribe to the gold bonds at this price from September 11 to September 15, 2023.

Investment limit

Every individual can subscribe to gold bonds equivalent to a maximum 4kg and minimum of one gram. At a price of Rs 5,873/gram, one can invest maximum of Rs 2.34 crore in sovereign gold bonds available in this particular tranche. If you buy 10 grams of physical gold directly in the market, then, you will have to pay minimum of Rs 59,250 as per Monday’s price. But if you subscribe to sovereign gold bond of denomination of 10 gram under the SGB 2023-24-II then, you will have to pay only Rs 58,730 for 10 gram of gold. This means you can save total of Rs 520 per 10 gram or Rs 52 per gram of the yellow metal.

The latest tranche of the Sovereign Gold Bond Scheme 2023-24 Series II is open for subscription from Monday, September 11, 2023 and will close on Friday, September 15, 2023. Depositors can withdraw after fifth year of investment. Bonds will expire on the eighth year.

Apart from gold at lower price, one can also make capital gains on investing in the tranche. You will also earn interest of 2.50 per cent every year paid into your bank accounts on semi-annual basis. You will get exemption on capital gains made apart from indexation benefits.