With the recent rapid increase in gold prices, interest in gold investment has surged. Today, many people are investing in gold, not just in its physical form but also through various financial instruments.
One such option to invest in gold is Sovereign Gold Bond (SGB), issued annually by the Reserve Bank of India (RBI).
There are four series each year, giving investors multiple opportunities to purchase these bonds.
If you are considering investing in SGBs, be prepared, as you might get this opportunity in June.
The first series of the 2023-24 financial year was available in June 2023, so it is anticipated that the first series of 2024-25 may also be available in June 2024. However, the RBI has not yet announced specific dates.
Investment Opportunities in 2023-24
In the financial year 2023–24, the four SGB series were offered in June, September, December, and February. The subscription dates were as follows:
First series: June 19-23, 2023
Second series: September 11-15, 2023
Third series: December 18-22, 2023
Fourth series: February 12-16, 2024
What is SGB?
The Sovereign Gold Bond scheme was introduced in November 2015 to reduce the physical demand for gold.
Investors can buy gold at prices lower than the market rate, with the government guaranteeing the safety of the investment.
The issue price is determined by the Indian Bullion and Jewelers Association Limited (IBJA) based on the closing price of 999 purity gold.
Benefits of SGB
More Profit: Investors receive market rate returns at maturity and an additional 2.5 per cent interest annually.
Security: No need to worry about the safety of physical gold.
Tax Benefits: No long-term capital gains tax on returns, and SGBs are not subject to the 3 per cent GST applied to physical gold.
Discount: A Rs 50 per gramme discount is available for online purchases.
Collateral: SGBs can be used as collateral for loans.
Where to Buy SGB?
You can buy SGBs through various channels:
1) Banks (online and offline)
2) Post offices
3) Stock Holding Corporation
4) BSE and NSE platforms
Investment Limits
Individuals can invest a minimum of 1 gramme and a maximum of 4 kg of gold per financial year through SGB.
The bond tenure is 8 years from the issue date, with premature redemption possible after 5 years.
SGBs can be sold through banks, the Stock Holding Corporation of India Limited (SHCIL), post offices, and stock exchanges like BSE and NSE.
