Sovereign Gold Bond To Be Available At A Discount Of Rs. 1695/10 gm

To capitalize on the festive season, where gold buying increases and during this time so that investors take on to paper investments in it, the government has decided to come up with SGB issue twice this month.

First the SGB will open on October 7 and for the same the issue price has been fixed at Rs. 3788 per gm.

The SGB scheme 2019-2020 Vth tranche will remain open uptil October 11.

The price of the SGB is decided basis the cost of 24K gold and currently the market price of 24K is at Rs. 39.075 per 10 gm which means investors investing in the scheme through the online mode will get an advantage or a discount of Rs. 1695 per 10 gm.

The scheme was kicked off in the year 2015 to promote the deployment of a part of household savings into financial savings. The SGBs offer an attractive 2.5% interest that is paid semi-annually.

The minimum investment in the scheme is 1 gm with an upper limit capped at 500 gm per individual per fiscal year and for other entities and HUFs, the maximum investment allowed in SGBs is 4 kgs. Another benefit that comes with SGBs is the capital gains on it realized at its maturity after 8 years are tax exempt.

GoodReturns.in