This time the Reserve Bank of India (RBI) has fixed the price of gold subscription at Rs 5091 per gram. Like every time, this time also investors applying online will be given a discount of Rs 50 per gram on the fixed price of the bond.
The stock market is falling. Fears of recession are deepening around the world. Investors are nervous. Where to invest? In the midst of all this, there are many people in the country who do not want to take risk, they want to invest money in such a place where investment is safe.
For such people, the Sovereign gold bond scheme of the government is a great option. Investors are getting an opportunity to invest in Sovereign Gold Bonds amid the outcry in the stock market. The first sovereign gold bond series of the current financial year is open for investors, you can invest in it till June 24.
Sovereign gold bond scheme of the government is a great option!
This time the Reserve Bank of India (RBI) has fixed the price of gold subscription at Rs 5091 per gram. Like every time, this time also investors applying online will be given a discount of Rs 50 per gram on the fixed price of the bond. Meanwhile, the country’s largest state-run bank State Bank of India has counted its 6 advantages for investors.
SBI counts these 6 benefits of sovereign gold bonds
- Sovereign gold bonds will give a return of at least 2.5 per cent annually.
- No Capital Gain Tax on Redemption will be applicable for withdrawing money from Sovereign Gold Bonds.
- Provision of loan against Sovereign Gold Bond. You can take a loan from the bank on this.
- Like physical gold, you do not even have to bear the cost of keeping it in the locker.
- After maturity, whenever you want, you can convert it into cash.
- No making charges and GST have to be paid like physical gold.
It is worth noting that in the Sovereign Gold Bond scheme, the price of gold is fixed by the Reserve Bank of India. As a bond, you can invest a minimum of one gram and a maximum of four kilos in gold. Tax exemption is also available on this.
There is no possibility of any kind of fraud and inaccuracy in Gold Bond. These bonds will mature after 8 years. It is clear that money can be withdrawn from it by redeeming it after 8 years. Not only this, there is also an option to exit after five years.
how much gold can you buy?
RBI issues Sovereign Gold Bonds on behalf of the Government of India. Investment in this bond is done in multiples of one gram, with a maximum limit of 500 grams in a year for an individual. On the other hand, Hindu joint families can buy bonds up to a maximum price of 4 kg of gold during a year. The upper limit of investment is 20 kg in case of Trust and similar units of the financial year.
Where to buy sovereign Gold Bond
To buy it, you have to contact your bank, BSE, NSE website or post office. This is a kind of secure investment as there is neither concern of purity nor hassle of security. This scheme was started in November 2015. Its objective is to reduce the demand for gold physically and to use the domestic savings in the purchase of gold for financial savings.