The first tranche of Sovereign Gold Bond (SGB) for FY 2023-24 has opened from subscription from today, June 19, 2023. This tranche's subscription closing date has been kept as June 23, 2023. SGB is a scheme launched by the Government of India to help people invest in gold. Under this scheme, gold bonds are issued by the Reserve Bank of India (RBI) on behalf of the Government of India (GOI). These gold bonds are government securities denominated in grams of gold. They will be issued to investors at Rs 5,926 per bond. There is a Rs 50 discount per gram for investors applying and paying using digital modes – the issue price will be Rs 5,876 in such cases.
|Date of Subscription
|Date of Issuance
|2023-24 Series I
|June 19 - June 23, 2023
|June 27, 2023
|Rs 5,926 per gram
|2023-24 Series II
|September 11-September 15, 2023
|September 20, 2023
|To be declare
Key features of the Sovereign Gold Bond Scheme:
- They are issued in denominations of 1 gram of gold and multiples. The minimum investment is 1 gram, and the maximum is 4 kgs for individuals.
- They have a maturity period of 8 years. However, there is an exit option after five years.
- The gold bonds earn an interest of 2.50% per annum, which is paid semi-annually. The last interest is payable on maturity along with the principal.
- The gold bonds are issued at the prevailing market price of gold. The Reserve Bank decides the issue price based on the previous week's average price of gold.
- The gold bonds are very liquid and can be traded on stock exchanges. They can also be used as collateral for loans.
- The interest earned and capital gains from the gold bonds are tax-exempt.
- Gold bonds are a safe way to invest in gold without worrying about storage or purity issues.
Advantages of investing in Sovereign Gold Bond Scheme:
- Alternative to physical gold - You can invest in gold without taking physical delivery of gold. This avoids the costs and risks associated with physical gold like purity, theft, etc.
- Attractive interest rates - The bonds offer an interest rate of 2.5% per annum on the amount of initial investment. This is in addition to the capital gains one can make if the price of gold rises.
- Very liquid - The bonds can be traded on stock exchanges within a specific date. They can also be redeemed with the issuing banks after a lock-in period of 5 years.
- Tax efficient - The interest earned and capital gains made on redemption of these bonds are tax free. There is no capital gains tax if held till maturity.
- Convenient to buy and sell - Gold bonds can be bought and sold very conveniently through banks, brokers, post offices, and stock exchanges. They can also be gifted or transferred to others.
- Sovereign guarantee. The bonds are issued by the Government of India, so the principal and interest amounts are guaranteed. There is virtually no risk of default.
- Tradable on exchanges - The bonds can be traded on stock exchanges after issuance, providing liquidity. However, they would be traded at the prevailing market price of gold.
How to Invest SGB with Moneysukh?
Applying for gold bonds online is a better idea, or else if you wish to apply offline, an investor can obtain the form from the Moneysukh nearest branch or RBI website. You can apply for SGBs online if you have a trading account with us. You must call our support number, 9638238000, and ask to apply online. Or visit the Moneysukh website.