There are now ways to own gold without the risks that come with it. The Government of India and the Reserve Bank of India offer Sovereign Gold Bonds as one such option. The RBI-issued Sovereign Gold Bonds, according to experts, are one of the best investment instruments in the cherished precious metal. You can buy gold in the form of a certificate here.
SGBs are government-issued securities that are thought to be safe. Their worth is measured in multiples of gold grams. SGBs have seen a significant increase in investors, as they are seen as a viable alternative to physical gold.
The Sovereign Gold Bond Scheme 2021-22 - Series I Details
The Sovereign Gold Bond Scheme 2021-22 - Series I will be open for subscription for the period from May 17, 2021, to May 21, 2021.
The bond's nominal value, calculated using the simple average closing price for gold of 999 purity on the last three business days of the week preceding the subscription period, i.e. May 11, May 12, and May 14, 2021 (May 13, 2021 being a holiday), is Rs 4,777/- per gram.
The Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of Rs 50 per gram below the nominal value to those investors who apply online and pay for their application using digital means.
The issue price of a Gold Bond for such investors will be Rs 4,727/- per gram of gold.
Who can issue SGB?
Banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognized stock exchanges, such as the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited, will sell the bonds.
The bond will have an 8-year tenor, with an exit option after the fifth year that can be exercised on the next interest payment dates.
SGB minimum and maximum amount
The minimum amount of gold that can be invested is one gram. Individuals have a maximum subscription limit of 4 kg, HUFs have a maximum subscription limit of 4 kg, and trusts and similar entities have a maximum subscription limit of 20 kg per fiscal year (April-March).