The issue price for the next tranche of Sovereign Gold Bond Scheme (SGB) 2021-22, which will open for subscription from Monday, has been set at: 5,109 per gram of gold, the Reserve Bank of India (RBI) said on Friday.
Sovereign Gold Bond Scheme 2021-22 – Series X will be open for subscription for five days from February 28 to March 4.
“The nominal value of the bond … works for 5,109,” the central bank said in a statement.
Investing in SGB is a better and less busy option. The installment-10 price of Sovereign Gold Bond has been fixed at 5109 per gram. Shifting investment from physical gold to digital/paper gold has been a major success for the government through SGBs, in which it has increased its income. 32,000 crore since its inception in 2015. Investing in paper gold (SGB) is a better and less hectic option as there is no storage cost, making charge as in the case of gold jewelery,” said Nish Bhatt, Founder and CEO, Millwood Cane International – an investment consulting firm.
Discount on applying online
Government of India, in consultation with RBI, has decided to offer exemption 50 per gram to the investors who apply online and the payment against the application is made through digital mode.
“The issue price of the Gold Bond for such investors will be 5,059 per gram of gold,” RBI said.
Bonds are denominated in multiples of gram(s) of gold with a basic unit of 1 gram. tenure of deeply concerned For a period of 8 years with exit option after 5th year to be exercised on the next interest payment dates.
Geopolitical tensions have pushed gold prices to a more than a year high. Historically, gold has attracted investment in times of uncertainty because of its safe-haven asset nature. “in situation Ukraine Crude oil prices have also jumped. The rise in oil prices put pressure on the INR, making gold more expensive. Currently, gold is supported by international as well as local developments,” said Nish Bhatt.
Going forward, developments in Ukraine and Fed action will provide direction to most asset classes. But higher crude oil prices and inflation in India, followed by pressure on INR, will continue to support gold prices in the short to medium term.
SGB: Minimum and Maximum Limit
The minimum permissible investment is 1 gram of gold. The maximum limit of membership in each financial year (April-March) is 4 kg for individuals, 4 kg for HUF and 20 kg for trusts and similar entities.
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