If you are planning to invest in gold, there is another great opportunity to invest in sovereign gold bonds (SGB). Investment in Series-3 of sovereign gold bond scheme 2020-21 (Sovereign Gold Bond Scheme 2020-21) has opened from Monday (June 8). You can invest in this scheme from June 12, 2020.
The Reserve Bank of India has also fixed the prices for the scheme. The sovereign gold bond price for the upcoming series has been fixed at Rs 4,677 per gram.
The government has decided to give a rebate of Rs 50 per gram to online applications and digital paying investors. Such investors will have to pay Rs 4,627 per gram as the issue price of the bond.
The bonds can be sold from here through Commercial Bank, Stock Holding Corporation of India Limited (SHCIL) and some selected post offices and stock exchanges such as National Stock Exchange of India Limited and Bombay Stock Exchange.
How much gold can you buy?
The smallest bond under the scheme will be equal to 1 gram of gold. One can buy a maximum of 500 grams of gold bond in a financial year. In all, the bond-buying limit is 4 kg and 20 kilograms for the trust or organization.
How much interest will you get?
When you invest in these bonds, these bonds offer 2.50 per cent interest annually, apart from the benefits of rising gold prices. This interest is paid in six months. The minimum limit of investment in these bonds is one gram.
What is the option to get out?
Sovereign Gold Bonds (SGB) can be redeemed at current gold prices in the market.
Gracia is a senior writer at Get Ignite, where she covers media and advertising and co-hosts the Original Content podcast. Previously, she worked as a tech writer at Adweek, a senior editor at the tech blog VentureBeat, and a local government reporter at the Hollister Free Lance. She attended Stanford University and now lives in Brooklyn.