You Can Buy Gold At A Discount Of Rs. 830/10 GM By Investing In SGB X Series

The government has opened the subscription for SGBs or sovereign gold bond (SGB) scheme 2019-20 Series X on Monday. And while the MCX gold last trade at Rs 43,430 per 10 gm, through this route one can have gold in their portfolio at a discount of Rs. 830 per 10 gm. The issue price for 1gm SGB is Rs. 4260. For online subscription, there shall be an additional discount of Rs. 50.

The subscription shall close on Friday, March 6 and the bond certificate will be issued on March 11.

Where to Buy SGBs from?

1. Banks
2. Stock Holding Corporation of India
3. Post offices
4. NSE
5. BSE
6. Agents

Why Should You Invest In SGBs?

1. Given the current economic and geo-political crisis previously due to US-China trade war situation and now the coronavirus outbreak, gold is seen to yield super returns if invested for a longer span of time. In the year gone by the metal yielded stupendous return to the tune of 20%.

2. It should be seen as a portfolio diversification strategy.

3. And if you have monthly surplus you can surely park in the avenue as in other investment options

4. If you need to accumulate gold for some definite goal such as for weddings etc. then also you can take the route.

5. Also, if you are underinvested in the commodity then SIP through investment in each of the tranche that comes up shall be wise.

6. Tax benefit as capital gains on redemption are exempt from tax implications.

Importantly these SGBs offer liquidity as these are traded on exchanges.
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