Sovereign Gold Bond: This gold is not just a piece of paper, know its benefits

Sovereign Gold Bond latest update: Modi government is allowing cheap gold to be bought for the third time. This is the gold (sovereign gold bond) found in the form of a piece of paper, which the thief cannot steal. It is not possible to charge an arbitrary rate when a gold worker goes on sale in a time of trouble. There is no GST and Making Charge, on the contrary, there is 2.50 per cent interest available annually. The money is sold at a market rate after a certain period of time. So yeah we’re talking about the Sovereign Gold Bond. It is open five days from May 31 with a discount from the market rate.

For this purpose, the RBI Sovereign Gold Bond Scheme has set a distribution price of Rs 4,889 per gram for 2020-21. Experts say gold could hit 55,000 rupees again by the end of this year. According to the Union Ministry of Finance, sovereign gold bonds will be issued in six installments between May and September. According to the website of the Indian Bullion and Jewelers Association, gold is worth Rs 48,654. This means that the price of a sovereign gold bond is slightly higher this time than Friday’s gold price. A sovereign gold bond costs Rs. 48,890 per 10 grams of gold.

Also Read: Gold Price Latest: The biggest change in the price of gold today, silver at Rs 870

500 per 10 grams

Apply for bonds online and pay Rs 50 per gram via digital payment. This means that if you take a gold bond through these methods, you will get an additional profit of Rs 500 per 10 grams. Under the Sovereign Gold Bond Scheme, a person can buy a maximum of 500 grams of gold bonds during the financial year. At the same time, the minimum investment is one gram.

Where to buy

Investor PAN is required with every SGB application. Gold bonds are sold by banks, stock holding corporations of India (SHCIL), designated post offices and accredited stock exchanges (NSE and BSE).

Characteristics of a sovereign bond

  • Bonds are subject to liquidity on stock exchanges within fifteen days of issuance.
  • The key issue is that investors get the benefit of raising the price of gold. Additionally, they also receive a guaranteed fixed interest of 2.5% on the investment amount.
  • These bonds have a maturity of 8 years and can be issued prematurely after the 5th year.
  • Long-term capital gains tax is levied on it after three years (capital gains tax is not taxed on hold until maturity) but can be used for debt

How far can gold prices go?

Despite the corona crisis, gold remains an investor-preferred medium and will continue to grow in the long term, says Anuj Gupta, vice president (commodity and currency) of IIFL. By Diwali this year, gold could again reach Rs 55,000, he says.

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