Sovereign Gold Bond Subscription: Today is a chance to buy cheap gold, know 10 main things before investing

By Anupreet Kaur On Jul 6, 2020

new Delhi. Even if the corona virus ( coronavirus ) May have reduced the physical demand for gold, but people have invested significantly in Exchange Traded Funds and Government Gold Bonds. Due to which the price had reached close to 49 thousand due to gold demand in the futures market. Talking about government bonds, the subscription of the fourth series is going to open from today. Where you will get a golden chance to buy cheap gold. Let us know 10 important things before investing in Sovereign Gold Bond Scheme.

Learn 10 important things from investing
1. You get 2.5% interest by investing in Sovereign Gold Bond Scheme. Which is given every 6 months.

2. Citizens living in India, Hindu undivided families, trusts, universities and charitable institutions can invest in this sovereign gold bond scheme.

3. The issue price for government gold bonds is fixed at Rs 4,852 per gram. Earlier, the issue price for subscription between June 8 and 12 was Rs 4,677 per gram. According to the Reserve Bank, the issue price will be fixed in rupees from the simple average of the closing price of 999 purity gold issued by IBJA for the last three workdays of the week preceding the subscription.

4. Those buying gold bonds online will get an additional discount of Rs 50 per gram.

5. Subscription to the Government Gold Bond Scheme 2020-21 Series-4 will open from today and will close on July 10. The RBI announced in April that the government would issue government gold bonds in six installments from April 2020 to September.

6. A person or a Hindu undivided family can invest up to four kilograms in this scheme in a financial year. Institutions like the Trust can invest up to 20 kg in a financial year.

7. The government gold bond scheme has a duration of eight years. The Government Gold Bond Scheme was launched in November 2015.

8. The RBI announced in April that the government would issue government gold bonds in six installments from April 2020 to September.

9. Gold prices started rising from mid-2018. Till then its price was around 30 thousand to 32 thousand rupees for many years. In the last two years, its price has jumped 57 percent.

10. It outperformed all other asset classes in terms of returns. The 10 year gilts have performed the best after gold. It has given around 17 per cent returns.