What is Sovereign Gold Bond (SGB) ? SGB vs Physical Gold? What are Sovereign Gold Bond Benefits ? Price history Graph? how many SGB Units purchased so far? How to buy SGB?
All the above Questions are answered in this video.
Sovereign Gold Bonds are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.
Why should Someone buy Sovereign Gold Bond rather than physical gold?
Below mentioned are the benefits of Sovereign Gold Bond
1) No Risk on Storage, The risks and costs of storage for Physical gold are eliminated as this is Digital gold or Paper gold.
2) Value/ Purity, No hassle to check purity of gold, Sovereign Gold Bond are pegged to 24 carat purity level. it wont deteriorate .
3) Interest on Investment- Interest rate of 2.50% per annum on the amount of initial investment will be provided in your account.
4) Wastage- No wastages or making charges in SGB, it is 10-20 % in physical gold.
5) Tax Benefit- The capital gains tax arising on redemption of SGB to an individual has been exempted
6) Safety- Not dubious or some private , these SGB units Held in the books of the RBI or in demat form eliminating chance of loss.
In Past Years Maximum quantity purchased in a tranche is 3600 KG @ 3007 Rs per gram, on 2016-17 Series III.
Similarly Minimum quantity purchased in a tranche is 82 KG @ 2952 Rs per gram, on 2017-18 Series XI.
In Last Tranche quantity purchased 1170 KG @ 4590 Rs per gram
Bonds are sold through offices or branches of Nationalized Banks, Scheduled Private Banks, Scheduled Foreign Banks, designated Post Offices, Stock Holding Corporation of India Ltd and the authorized stock exchanges either directly or through their agents.
A customer can apply online through the website of the commercial banks like SBI, HDFC etc..
The issue price of the Gold Bonds will be Rs 50 per gram less than the nominal value for investors applying online.
There are various upcoming tranches for Sovereign Gold Bond as shown below
S. No. Tranche Date of Subscription Date of Issuance
1 SGB 2020-21 Series I April 20-24, 2020 April 28, 2020
2 SGB 2020-21 Series II May 11-15, 2020 May 19, 2020
3 SGB 2020-21 Series III June 8-12, 2020 June 16, 2020
4 SGB 2020-21 Series IV July 6-10, 2020 July 14, 2020
5. SGB 2020-21 Series V August 3-7, 2020 Aug 11, 2020
6. SGB 2020-21 Series VI August 31- September 4, 2020 Sep 08, 2020
You can check further details in RBI websites, Comment if you need to know anything in particular.
hope you got an idea of Sovereign Gold Bond, please do your research and invest wisely.
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