Sovereign Gold Bond scheme: Here’s how to buy cheaper gold ahead of Dhanteras

The eighth tranche of Sovereign Gold Bond 2020-21, which is issued by the Reserve Bank India (RBI) on behalf of the federal government, will open for subscription on Monday forward of Dhanteras and Diwali later within the week. The problem value for Sovereign Gold Bond Scheme 2020-21-Series VIII has been mounted at Rs 5,177 per gram of gold, the central financial institution has stated.

The newest Sovereign Gold Bond Scheme, which was launched in November 2015 to scale back the demand for bodily gold and shift part of the home financial savings into monetary financial savings, shall be opened for subscription from November 9 to 13, 2020. “The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity … works out to Rs 5,177 per gram of gold,” RBI has stated.

Here’s how one can purchase gold at a relatively cheaper value by Sovereign Gold Bond Scheme 2020-21-Series VIII:

1. RBI will supply a reduction of Rs 50 per gram lower than the nominal worth to these traders making use of on-line and the fee in opposition to the applying is made by digital mode.

2. The central financial institution stated that for such traders, the problem value of Sovereign Gold Bond shall be Rs 5,127 per gram of gold.

3. The problem value for the bonds (Series VII), which was open for subscription from October 12 to October 16, was Rs 5,051 per gram of gold.

4. The bonds are denominated in multiples of gram(s) of gold with a primary unit of 1 gram and the tenor of the SGB shall be eight years with exit choice after the fifth 12 months to be exercised on the curiosity fee dates.

5. Only resident people, Hindu Undivided Families (HUFs), trusts, universities and charitable establishments should purchase the Sovereign Gold Bonds.

6. The minimal permissible funding is 1 gram of gold and the utmost restrict of subscription is 4kg for people, 4kg for HUFs and 20kg for trusts and comparable entities per fiscal or between April and March.

7. Investors should purchase gold bonds from banks, besides small finance banks and fee banks, Stock Holding Corporation of India (SHCIL), designated publish workplaces, and recognised inventory exchanges (NSE and BSE).

8. The Sovereign Gold Bonds are denominated in multiples of grams of gold with a primary unit of 1 gram.

9. The tenure of the gold bonds shall be eight years with exit choice after the fifth 12 months to be exercised on the curiosity fee dates.

10. A complete of Rs 9,652.78 crore (30.98 tonnes) has been raised by the Sovereign Gold Bonds Scheme (37 tranches) since its inception in November 2015, RBI stated in its Annual Report 2019-20. The central financial institution has issued 10 tranches of Sovereign Gold Bonds (SGBs) for Rs 2,316.37 crore (6.13 tonnes) throughout 2019-20.

(With company inputs)