RBI’s Sovereign Gold Bond 2023-24 (Series I) to open from June 19
RBI has fixed the price of gold for series I for 2023-24 of the Sovereign Gold Bond Scheme. This time, the price of gold has been fixed at Rs 5,926 per 1 gram. It can be invested in both online and offline modes. Those who pay for these through online application and digital payment will get a discount of Rs 50 per gram. That is, they will have to pay Rs 5,876 for 1 gram. This scheme will open for subscription from 19 to 23 June 2023.
In Sovereign Gold Bonds, you invest in 24 carat i.e. 99.9% pure gold. It can be invested in both online and offline modes. Investment in SGBs earns an interest of 2.50% per annum. If money is required, a loan can also be taken against the bond. The price of the bond is decided on the basis of the published rate of Indian Bullion and Jewelers Association Limited ie IBJA.
In this, the average of the rate of the last three days of the week preceding the subscription period is calculated.
What is Sovereign Gold Bond?
Sovereign Gold Bond is a government bond. It can be converted into demat form. If the bond is of five grams of gold, the bond will be worth as much as five grams of physical gold. It is issued by RBI.
No worries about purity and safety
There is no need to worry about accuracy in SGBs. The gold bond price is linked to the gold price of 24 carat purity published by the Indian Bullion and Jewelers Association (IBJA) as per the National Stock Exchange (NSE). Along with this it can be kept in the form of demat, which is quite safe.
You can invest in maximum 4 kg gold
Through SGBs, a person can invest a minimum of 1 gram and a maximum of 4 kg of gold in a financial year. In case of joint holding, the investment limit of 4 kg will be applicable to the first applicant only. At the same time, the maximum limit of purchase for a trust is 20 kg.
Tax is to be paid if withdrawn before 8 years
Sovereign does not attract any tax on the profit earned after the maturity period of 8 years. On the other hand, if you withdraw your money after 5 years, then the profit from this is taxed at 20.80% in the form of Long Term Capital Gain (LTCG).
You can also invest offline
RBI has given many options for investing in it. Investments can be made through bank branches, post offices, stock exchanges and Stock Holding Corporation of India (SHCIL). The investor has to fill an application form. After this money will be deducted from your account and these bonds will be transferred to your demat account.
PAN is mandatory for making investments. The Bonds will be sold through all banks, Stock Holding Corporation of India Limited (SHCIL), recognized stock exchanges, National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).
Gave 120% return in 7 years
When the Sovereign Gold Bond Scheme was launched in 2015-16, its price per gram was Rs 2,684. There was a discount of 50 rupees on this. That is, the price if purchased online was Rs 2,634. The series of Sovereign Gold Bond that has just been launched is priced at Rs 5,926. With a discount of Rs 50, this price has now reached Rs 5,876. In this way, in the last 7 years, this scheme has given a return of about 120%.
