Mumbai : The sixth tranche of gold bonds of this fiscal opens for subscription tomorrow amid volatile prices of the yellow metal in recent days. The Reserve Bank of India (RBI) has fixed the issue price at 5,117 per gram. Those applying online and making payment online get a discount of ₹50 per gram. For such investors, the issue price of gold bond will be ₹5,067 per gram of gold. Minimum permissible investment is 1 gram of gold.
Gold prices in India have corrected sharply from record highs hit earlier this month. In futures markets gold currently trades at ₹51,400 levels per 10 gram as compared to August 7 highs of ₹56,200.
Here are points to know about latest gold bond scheme:
- The Sovereign Gold Bond Scheme 2020-21-Series VI remains open till September 4.
- The issuance date of this latest tranche of gold bonds will be September 08, 2020.
- Sovereign gold bonds, which are government securities denominated in grams of gold, are issued by RBI on behalf of the Government of India. The investors will be issued a holding certificate for the same.
- Gold bonds have a maturity period of eight years with an exit option after fifth year.
- Gold bonds are sold through Bonds scheduled commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and stock exchanges.
- The redemption price is based on the then prevailing price of gold – simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited.I
- If the gold bond is held in demat form, it can be traded on exchanges, offering an exit route before five years, subject to liquidity. Bonds are tradable on stock exchanges within a fortnight of the issuance. Analysts say that investing in gold bonds is a good idea if you plan to hold gold till the bonds’ maturity.
- Gold bonds can be can be used as collateral for loans.
- Gold bonds offer an annual interest rate of 2.50% to investors. Capital gains, if any, at maturity is tax-free. This is an exclusive benefit available on gold bonds.
