Secure Your Future with Sovereign Gold Bond: Scheme 2023-24
During the first half of the current fiscal year, the government has disclosed its plans to issue two sets of sovereign gold bonds (SGBs). The initial set will accept subscriptions from June 19th to 23rd, while the second set will be open for purchase from September 11th to 15th.
According to Nish Bhatt, the Founder & CEO of Millwood Kane International, the Series-I 2023-24 of Sovereign Gold Bonds will be priced at ₹5,926 per gram. He also mentioned that investing in these bonds has proven to be beneficial for the RBI, helping them raise over ₹30,000 crore since its introduction in November 2015.
The commencement of the Sovereign Gold Bond scheme for retail investors provides a unique opportunity to invest in gold as an asset. This investment avenue is regulated and secure, allowing individuals to buy gold in small amounts, starting from just one gram and going up to four kilos. The bonds are issued in a dematerialized form, making it convenient to hold them in a demat account. This eliminates concerns related to impurities and deductions commonly associated with physical gold. The bonds are backed by 99.9% pure gold held by the Reserve Bank of India, guaranteeing that investors will receive the full value of the gold when they redeem the bonds after the eighth year, without any deductions. Abhijit Roy, CEO of GoldenPi, emphasizes that this presents a reliable and hassle-free method of investing in gold.
Should you invest?
Investing in paper or digital gold offers several advantages, including high liquidity, no storage costs, and easier selling compared to physical gold. Retail investors also have the opportunity to earn a 2.5% annual interest on their investment until the bonds mature. Moreover, there is a discount of ₹50 per gram of gold for online applications made through digital payment methods such as Netbanking, NEFT, and UPI. Nish Bhatt highlights that investing in Sovereign Gold Bonds (SGBs) provides the added benefit of receiving semi-annual interest payments. SGBs have consistently delivered double-digit gains since their introduction in 2015. Taking all these factors into account, investing in SGBs presents a compelling proposition for investors.
Advantages of SGB
Sovereign Gold Bonds (SGBs) offer advantages such as easy liquidity through their listing on exchanges, enabling investors to redeem them starting from the fifth year. One of the notable benefits of this investment is the complete exemption from capital gains tax when the bonds mature after eight years.
Should retail investors go for SGB?
The Sovereign Gold Bond scheme provides retail investors with a safe and profitable investment option in gold, as stated by Abhijit Roy, CEO of GoldenPi. It enables investors to diversify their portfolios and take advantage of the long-term prospects of this valuable metal. With its convenient accessibility, assurance of purity, interest earnings, and tax advantages, the scheme offers an attractive opportunity for investors seeking to tap into the potential of gold as a long-term investment.
Where can investors buy SGB?
Investors have multiple options to purchase Sovereign Gold Bonds (SGBs):
• They can buy SGBs from scheduled commercial banks (excluding Small Finance Banks, Payment Banks, and Regional Rural Banks).
• Another option is to purchase SGBs through Stock Holding Corporation of India Limited (SHCIL).
• Clearing Corporation of India Limited (CCIL) also facilitates the purchase of SGBs.
• Designated post offices (as notified) are authorized locations where investors can buy SGBs.
• Lastly, investors can buy SGBs directly from recognized stock exchanges or through their agents.
These diverse channels provide investors with various avenues to acquire Sovereign Gold Bonds according to their convenience.