Sovereign Gold Bonds: Golden reasons to invest

The Sovereign Gold Bond Scheme 2021-22 is now open for subscription till July 16, 2021. The issue price for the fourth tranche of SGB Scheme 2021-22, has been fixed at Rs 4,807 per gram of gold. Government notification states those applying online and making payment against the application through digital mode would get discount of Rs 50 per gram. State Bank of India (SBI), country’s largest lender, has listed six golden reasons for an investor to invest in this scheme. “Planning to invest in Gold? Here are 6 golden reasons to invest in Sovereign Gold Bonds,” SBI tweeted.

These six reasons are:

— Sovereign gold bonds have assured returns of 2.50% per annum payable half-yearly.

— The bonds have no capital gain tax on redemption.

— They can be used as collateral for loans.

— From the liquidity aspect, sovereign gold bonds are tradable on exchanges.

— They are secure and have no storage hassle unlike physical gold.

— There is no GST and no making charges applied unlike physical gold.

Buy online

SBI customers can invest in Sovereign Gold Bond Scheme 2021-22 on http://onlinesbi.com under e-services.

The amount will be deducted from the account and the customer/investor will receive the online certificate instantly.

SGB scheme

In November 2015, the scheme was launched with an objective of reducing the demand for physical gold and shift a part of the domestic savings into financial savings.

The bonds are denominated in multiples of 1 gram of gold. The tenure of the bond is for a period of 8 years with an exit option after the fifth year to be exercised on the next interest payment dates.

The minimum permissible investment is 1 gram of gold. The maximum limit of subscription is 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF), and 20 kg for trusts and similar entities per fiscal year (April-March).