Sovereign gold bond scheme: Sovereign gold bond (SGB) scheme 2021-22- Series 10 is going to open tomorrow i.e. on 28 February in the midst of Russia-Ukraine war. The issue price of SGB released in this last installment of FY22 is Rs 5,109 per gram, which is Rs 323 higher than the issue price of Rs 4,786 per gram in the 9th series. The Government of India, in consultation with the Reserve Bank of India (RBI), has decided to offer a discount of Rs 50 per gram (Discount on SGB) to investors applying online. However, for this they have to make digital payment.
According to experts, amidst the ongoing uncertainty due to Ukraine tensions, one should not miss this opportunity and must subscribe for the issue. The issue will be open for subscription from February 28, 2022 to March 4, 2022.
In a Livemint report, Anuj Gupta, Vice President, IIFL Securities said, “Gold prices are expected to continue to fluctuate due to the situation created by the Russia-Ukraine war. A price of Rs 5,109 per gram can be a good bet for long term investors. If you look at the returns of the last 5 years in gold, then it has increased from Rs 3,000 per gram to Rs 5,100 per gram. In this way, investors have got a return of 70 percent in this. Hence, in the current geopolitical uncertainty environment, investing in this gold bond scheme for 5 years can be a good bet.”
Benefits in the form of many cost savings
Nish Bhatt, Founder and CEO, Millwood Cane International said, “It has been a great success for the government to encourage investment in digital/paper gold through SGBs as compared to physical gold. It has raised Rs 32,000 crore since its inception in 2015. Paper gold i.e. SGB is a good option, as it does not have storage cost. Also, there is no construction fee.
Where can I invest
RBI will release the 10th installment of SGB on behalf of the Government of India. These bonds will be sold through all banks, Stock Holding Corporation of India Limited (SHCIL), Post Office and National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). They are not sold in small finance banks and payment banks.
Under the Sovereign Gold Bond Scheme, a person can buy a maximum of 4 kg of gold bonds within a financial year. At the same time, the minimum investment should be one gram. Trusts or similar entities can buy bonds of up to 20 kg in a financial year.