New Delhi:
With the recent surge in gold prices, the interest in gold investments has spiked among investors.
Besides physical gold, Sovereign Gold Bonds (SGBs) have emerged as a popular investment avenue.
Issued annually by the Reserve Bank of India (RBI), SGBs offer investors a chance to invest in gold in a convenient manner.
Upcoming Opportunity
Investors keen on investing in SGBs should prepare as the first series of Sovereign Gold Bond for the financial year 2024-25 is anticipated to be available in June. Last year, the first series for the financial year 2023-24 was also launched in June.
While the RBI hasn’t announced a specific date yet, investors are hopeful for an opportunity soon.
Previous Series Availability
In the financial year 2023-24, the four series of SGBs were available in June, September, December, and February.
The subscription period for each series ranged from a few days to a week, offering investors multiple opportunities to invest.
What are Sovereign Gold Bonds?
Sovereign Gold Bonds were introduced in November 2015 to reduce physical gold demand. These bonds allow investors to invest in gold at market prices, 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 SGBs
Double Profit Potential: Investors receive returns based on market rates at maturity along with a 2.5% interest.
Security: No worries about the safety of physical gold as SGBs are held electronically.
Tax Benefits: Long-term capital gains tax is exempted, and it is not subject to GST.
Discounts: Online payments offer a discount of Rs 50 per gram. Loan Option: SGBs can be used as collateral for loans.
How to Purchase SGBs
Online and offline options are available through banks, post offices, and platforms like Stock Holding Corporation, BSE, and NSE.
Minimum investment is 1 gram, and the maximum is 4 kg per financial year with an 8-year tenure, allowing premature redemption after 5 years.
Investors interested in SGBs should stay updated with official announcements for the launch of Series 1 and seize the opportunity to invest in gold.
