Gold
Gold
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The Series X of the Sovereign Gold Bond (SGB) opened for subscription from March 2. The prices have been fixed at Rs 4,260 per gram of gold which is as per the average closing price by Indian Bullion and Jewellers Association (IBJA) for 999 purity of the last three business days preceding the subscription period. The last day to subcribe for this scheme is March 6.

The demand for these bonds is expected to go up amid the equity market tanking in the recent times due to the coronavirus outbreak.

Moreover, the government is also offering a discount of Rs 50 per gram to investors who apply online and the issue price for these investors will be Rs 4,210 per gram.

Here's all you need to know about Sovereign Gold Bonds scheme;

1. These bonds are periodically issued by RBI on behalf of the government.

2. The government has set a minimum amount of gold bond investment at one gram per investor.

3. Investors receive an annual interest of 2.5% and it is clubbed with subscribers income. Tax is not deducted from this income.

4. The maturity period of gold bonds are eight years.

5. The gold bonds can be sold on exchanges if the investor wants to sell it for eight years.

6. GST is not levied on these bonds while 3% GST is levied on purchases of gold.

7. These bonds gives a good exposure to gold and is considered as a better option than investing in jewellery or bullion gold.

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