The issue price for the next tranche of Sovereign Gold Bond Scheme 2021-22, which will open for subscription for five days from Monday (January 10), has been fixed at Rs 4,786 per gram.
The Sovereign Gold Bond Scheme 2021-22 - Series IX will be open for subscription for the period from January 10-14, 2022. The nominal value of the bond ''works out to Rs 4,786 per gram of gold'', the central bank said in a statement.
The Government of India, in consultation with the Reserve Bank, has decided to offer a discount of 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. ''For such investors, the issue price of gold bond will be Rs 4,736 per gram of gold,'' the RBI said.
The issue price for Series VIII, which was open for subscription during November 29 – December 3, 2021 was Rs 4,791 per gram of gold.
The RBI issues the bonds on behalf of the Government of India.
The bonds will be sold through banks Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges -- NSE and BSE.
The scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings -- used for the purchase of gold -- into financial savings.
Price of bond is fixed in Indian rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association for the last three working days of the week preceding the subscription period.
The bonds are denominated in multiples of gram(s) of gold with a basic unit of one gram. The tenor of the bond will be for a period of 8 years with exit option after 5th year to be exercised on the next interest payment dates.
Minimum permissible investment is one gram of gold. The maximum limit of subscription is 4 kg for individual, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal (April-March).
The know-your-customer (KYC) norms will be the same as that for purchase of physical gold.
The scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings -- used for the purchase of gold -- into financial savings.
Demand for gold to remain high
According to an analyst, "Looking at the fundamentals of gold, prices have been relatively stable in MCX Exchange as the economy has shown better recovery. Although worries continue to loom in the global markets regarding the Omnicron cases especially in Europe and United States, but the world is relatively much more prepared for the same. Fed could go for a hawkish stance in its coming monetary policy meetings that could cap extreme bullishness in gold prices. However, lot more stability has been witnessed in stocks and bonds with Indian demand for gold to remain higher for the year 2022 as compared to the preceded two years."
