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Sovereign Gold Bonds Register Record Subscription Worth Rs. 3387 Crore

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Investment interest in the precious yellow metal gold has been extraordinary with a record subscription worth Rs. 3387 crore received for the recently concluded fifth series of Sovereign gold bonds or SGBs for fiscal year 2021. Volume wise subscription totals to 6.35 tonnes.

SGBs See Highest Ever Subscription For Rs. 3387 Crore In Series V Of FY21
 

This is in fact the highest subscription received thus far in any series since the roll out of the scheme in 2015 in both value and volume terms.

The record high subscription is despite the issue price for SGB being relatively high at Rs. 5334 per gm and experts suggesting to subscribe to the issue only if one does not have gold allocation in his or her portfolio or wants to accumulate gold for long-term financial goals such as child's marriage.

In the last 5 years, a total of 48.16 tonnes SGBs have been issued by the RBI on behalf of the government.

"It's a stark contrast to physical demand which has slumped amid the Covid pandemic," said Surendra Mehta, national secretary of gold trade body IBJA. "While it reflects rising investment demand, demand for physical gold would resume post the pandemic."

As per World Gold Council (WGC) in the June quarter, gross bullion imports into the country was merely 14.1 tonnes, 95% down from a year ago period, reflecting investor sentiment being affected due to Covid 19.

Sovereign Gold Bond scheme was launched to channelize household investment into physical gold into investment form of gold and also to restrict expensive import of the yellow metal.

GoodReturns.in

Read more about: sgbs sovereign gold bonds
Story first published: Wednesday, August 19, 2020, 8:28 [IST]
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