- Investments can be made in gold bonds from October 12 to 16
- The price of gold per gram has been fixed at Rs 5,051.
Today, from October 12, there will be an opportunity to buy Sovereign Gold Bond (Gold ETF) once again. Investments can be made in gold bonds from October 12 to 16. Under this, the price of gold per gram has been fixed at Rs.5,051. Those who apply for these online and pay through digital payment will get a discount of 50 rupees per gram. Earlier, an issue price of Rs.5,117 was set for the open Series-6 from 31 August to 4 September. The eighth series will air on 9–13 November.
Gold bonds will get an interest of 2.5 percent annually. Investors also get the facility to buy at least 1 gram bond. Investors also have the facility to take loans against gold bonds. There is a government (sovereign) guarantee of both capital and interest. Individuals will not have to pay long term capital gains tax. Gold bonds can be used as collaterals for taking loans. Apart from this, TDS is also not deducted when investing in gold bonds.
- This issue of sovereign gold bond is coming at a time when the price of gold is falling after reaching the highest level in August. The price of 10 grams of gold in the futures market is around Rs 56,200.
- RBI has fixed the price of gold under the Gold Bond based on the average closing price published by the Indian Bullion and Jewelers Association (IBJA). This is for 999 purity gold.
- Reserve Bank of India issues Sovereign Gold Bonds. It is issued by the central government.
- The Sovereign Gold Bond Scheme was launched in November 2015. To reduce the demand for physical gold in the country and people started to save domestic and financial savings through gold.
- A minimum of 1 gram of gold can be invested under this scheme.
- Gold bonds can be invested through small finance banks or payment banks, stock holding corporation of India, post office, and NSE and BSE.
- Experts believe that Sovereign Gold Bond is an effective way to invest in non-physical gold. If an investor in a gold bond stays till maturity, they get many benefits.
- Gold bonds also get interest at the rate of 2.50 percent per annum.
- The most important thing about investing in a gold bond is that it does not have to worry about its storage. No GST is also payable on keeping it in Demat.
- If any capital gains are made on the maturity of the gold bond, then it will be exempt. This is an exclusive benefit on gold bonds.