Your opportunity to purchase Sovereign Gold Bonds is being offered to you once more by the government. Beginning on Monday, August 22, the second series of the Sovereign Gold Bond Scheme 2022–23 will be sold. Up until August 26th, there will be an opportunity to invest in this. This time, the price of a gramme of Sovereign Gold Bond has been set by the government at Rs 5,197. You will receive a discount of Rs. 50 per gramme for submitting your application and making your payment online. In other words, the price of 1 gramme of gold is Rs 5,147.
Right now gold is close to 52 thousand:
You can get 24 carat pure gold by investing in a sovereign gold bond. You will need to pay Rs 51,470 if you invest 10 grammes at the rate of Rs 5,147 per gramme in this. On the other hand, the current price of gold in the bullion market is 51,802 for every 10 grammes. In other words, you have the chance to purchase gold at a lower price than the market.
2.50% interest is available on the issue price:
Sovereign Gold Bonds offer a fixed interest rate of 2.50% per annum on the issue price. This money reaches your account every 6 months. However, tax will have to be paid on it according to the slab.
No worries about purity and safety:
Sovereign Gold Bonds are pure, thus there is no need to be concerned. The price of gold bonds, according to the National Stock Exchange (NSE), is correlated with the price of 24 karat gold released by the Indian Bullion and Jewelers Association (IBJA). Additionally, it can be retained in the form of a demat, which is free and quite safe.
Tax has to be paid on withdrawal before 8 years:
Gains made after the 8-year sovereign maturity term are not subject to taxation. On the other hand, if you remove your money after five years, the profit is subject to Long Term Capital Gain (LTCG) taxation, which is levied at a rate of 20.80%.
You can also invest offline:
The RBI has provided numerous investing alternatives. The Stock Holding Corporation of India, post offices, and bank branches all provide investment opportunities (SHCIL). An application form must be filled out by the investor. The bonds will then be transferred to your demat account after the money has been taken from your account.
PAN is required for investment. All banks, Stock Holding Corporation of India Limited (SHCIL), recognised stock exchanges, including National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited, would participate in the sale of the bonds (BSE).
95% return given in 7 years:
In 2015–16, the Sovereign Gold Bond Scheme was introduced, with a per-gram cost of Rs 2,684. On this, there was a discount of Rs 50. In other words, the cost had increased to Rs 2,634. The cost of the recently introduced series of sovereign gold bonds is Rs 5,197. This pricing is currently Rs 5,147 after a Rs 50 discount. In the last six years, the strategy has generated a return of 92% in this way.
RBI issues sovereign gold bonds:
An RBI-issued government bond is known as a sovereign gold bond. It is possible to change it into demat form. Its worth is measured in grammes of gold. The price of the bond will be equal to the cost of five grammes of gold if the bond has a value of five grammes of gold. To purchase it, the issue price must be paid to a broker approved by SEBI. The proceeds from the sale of the bond are placed into the investor’s account.