Amid a volatile stock market even as investors may be mulling to invest in gold, the latest Sovereign Gold Bond Scheme provides an opportunity to grab a Rs 50 discount per gram. Notably, the Sovereign Gold Bonds 2018-19 (Series V) will remain open from 14th to 18th January, 2019. The Issue Price of the Gold Bond during this subscription period shall is fixed at Rs 3,214 per gram with the Settlement Date of January 22, 2019, as also published by RBI in their Press Release dated January 11, 2019. Interestingly, those investing through the digital mode can avail a Rs 50 discount per gram.
“The Government of India in consultation with the Reserve Bank of India has decided to allow discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode,” the government said in a press release. Accordingly, for such investors, the issue price of Gold Bond will be Rs. 3,164 per gram of gold.
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How to invest
According to a FAQ released by the RBI, a customer can apply online through the website of the listed scheduled commercial banks. “The issue price of the Gold Bonds will be Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode,” RBI noted.
Unlike investments in gold ETF, on the principal amount invested in Sovereign Gold Bond, the investors get a fixed interest rate of 2.50% per annum payable semi-annually. Notably, gold had emerged as the best asset class with 7% returns in the year ended December 31, 2018, more than double the returns of Nifty at 3.13% returns. Only residents individuals are allowed to invest in them. The Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
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Source: Financial Express