Sovereign Gold Bond 2024

SGB : According to the RBI, investors who choose to make their payment online will be eligible for a discount of Rs 50 per gram, resulting in a reduced issue price of Rs 6,213. Investors will have various avenues to sell their Sovereign Gold Bonds, including scheduled commercial banks, post offices, and stock exchanges. In recent years, SGBs have gained popularity among many individuals due to the convenience of storing digital gold without any complications.

The Reserve Bank of India (RBI) has announced that the next tranche of the Sovereign Gold Bond (SGB) Scheme 2024 will be open for subscription from February 12, 2024. The issue price for this series, known as Series IV of the Sovereign Gold Bond Scheme 2023-24, will be Rs 6,263 per gram. Investors who make payment through online mode will receive a discount of Rs 50 per gram, reducing the issue price to Rs 6,213. The subscription period will last for five days, ending on February 16, 2024.

Investors will have various options to sell their Sovereign Gold Bonds, including scheduled commercial banks, post offices, and stock exchanges. The RBGs will be issued to investors on February 21, 2024.

SGBs are considered a medium to long-term investment with a tenor of eight years. However, investors have the option to choose premature redemption after the fifth year. The interest rate is fixed at 2.50% per annum, making it an attractive investment compared to physical gold. Investors receive payments every six months, and the profits made on SBG redemption are fully tax-free.

In recent years, SGBs have gained popularity due to the convenience of storing digital gold and the absence of charges for storing and maintaining gold. However, it is important to note that this investment carries monetary risks if gold prices decline in the future.

According to the RBI’s website, the SGB offers a superior alternative to holding physical gold, as the quantity of gold for which the investor pays is protected. The investor receives the ongoing market price at the time of redemption or premature redemption. SGBs eliminate the risks and costs of storage, and investors are assured of the market value of gold at maturity. Additionally, SGBs do not have issues like making charges and purity associated with gold in jewelry form. The bonds are held in the books of the RBI or in demat form, eliminating the risk of loss of scrip, among other benefits.

SGBs are available in one-gram denominations and individuals can invest a minimum of one gram. However, there is a maximum limit of four kilograms for individuals and Hindu Undivided Family (HUF) subscribers. Trusts, on the other hand, can subscribe up to a maximum of 20 kilograms. The central bank recently launched the SGB Scheme 2023-2024 Series III, with an issue price of 6,199 per gram of gold. Additionally, there is a Rs 50 discount available for online payments during the launch period from December 18-22, 2023.